(Balkans.com) -- The world Zinc surplus for the first half of 2011 has increased by 8% compared to the entire 2010, with the Chinese inventories at historically highest levels reported the World Bureau of Metal Statistics (WBMS)
The surplus in Jan-June 2011 stood at 427000 tonnes whereas for the surplus for the entire year of 2010 was recorded at 395000 tonnes. Zinc inventories were up by 263000 tones in Jan-June, WBMS reported.
Chinese consumed 43% of the global total at 257100 tonnes. The world demand grew 19900 tonnes in H1 2011 compared to H1 2010.
At the Multi-Commodity Exchange of India (MCX), Zinc has fallen from Rs 109.95 to Rs 98.70, a decline of over 10% for the year while at the London Metal Exchange (LME), zinc fell from around $2450 in January to around $2150 this month, a decline of over 12%.
ABN-AMRO had been negative on the metal. ‘There is very little supporting the zinc price; it’s only a matter of time before the metal’s bearish supply-demand fundamentals begin show themselves. The high price is simply encouraging more supply to come online and new zinc projects to be brought forward, which will only add to the surplus’, the bank said in a July Metals report.