Global zinc market records deficit during Jan-Oct '14

Author: Paul Ploumis
22 Dec 2014 Last updated at 05:53:01 GMT
SEATTLE (Scrap Monster): The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global zinc market has recorded a deficit during the initial ten months of the year. As per the report, the zinc market ended in a shortage of 261,000 tons when matched with the surplus of 94,000 reported during entire year 2013.

The reported stocks declined by 310,000 tonnes during the initial ten months of the year. Meantime, LME stocks fell by 52,500 tonnes in the month of October. The LME inventory levels were down by 233,000 tonnes when compared with the levels during end-2013. Incidentally, LME stocks constitute 60% of the global zinc total.

Global refined zinc production rose by 1.9%, whereas consumption rose by 5.5% during the period from January to October this year. The slab zinc output during the month of October this year totaled 1,170.10 kt, while the consumption totaled 1,167.30 kt.

The world zinc demand was 590 kt higher than the first ten-month period in 2013. The Chinese demand witnessed a growth of 6.5% over the year, accounting for nearly 47% of the global demand. The Chinese apparent demand totaled 5,238 kt during the ten-month period. The Japanese apparent demand too rose 4.4% over the year during January to October this year to 410.10 kt.

The WBMS report also states that the Chinese output of locally refined zinc metal grew by 7.4% in comparison with the 2013 totals. The imports of special high grade zinc by China totaled 25 kt during October. The country has imported 533.60 kt of special grade zinc during the initial ten months of the year, higher when compared with the imports of 488.5 kt during January to October 2013.