By Paul Ploumis (ScrapMonster Author)
October 14, 2015 03:09:13 AM
BRUSSELS (Scrap Monster): The International Lead and Zinc Study Group (ILZSG) in its two-day session held on 8th and 9th of this month in Lisbon, Portugal analyzed the current trends and issues faced by the global zinc industry. The meeting also published market forecasts for 2015 and 2016.
According to ILZSG forecasts, global demand for refined zinc metal will witness a growth of 1.1% to 13.90 million tonnes in 2015. Furthermore, ILZSG predicts a demand growth of 3.3% to 14.37 million tonnes in 2016. The increased output of galvanized steel sheet from China will lead to 1.4% growth in refined zinc usage by that country in 2015. The Chinese usage is expected to rise further by 4.9% in 2016.
The increased demand from automotive and construction sector is expected to drive 1.9% usage growth in the US during 2015. The US refined zinc usage is predicted to rise by 1.7% in 2016. Zinc demand is expected to witness growth in India, South Korea, Taiwan and Vitenam. On the other hand, the zinc usage is likely to contract significantly in the Europe, Canada and Japan. ILZSG forecasts decline of 1.4% and 0.7% in zinc demand by the European region in 2015 and 2016 respectively.
The global zinc mine production is predicted to rise marginally by 0.3% to 13.55 million tonnes this year. The increased output from China will result in 1.8% production growth in 2016 to 13.80 million tonnes. ILZSG predicts rise in production in India, Australia, China, Peru, the Russian Federation and Sweden. Bolivia, Canada, Ireland, Mexico, Kazakhstan, Namibia and Turkey are likely to report decline in mine output.
Also, global refined zinc metal production will increase by 3.7% to 13.99 million tonnes in 2015. The production will rise further by 1.6% to 14.21 million tonnes during the next year.
ILZSG forecasts global zinc market surplus of 88,000 tonnes in 2015, followed by a deficit of 152,000 tonnes in 2016.