UNITED KINGDOM May 05 2017 3:51 PM
LONDON (Scrap Register): The global demand for refined zinc metal is forecast to total 14.30 million tonnes in 2017, marginally higher by 2.6% over the previous year. The demand had witnessed rise of 3.1% in 2016, according to the International Lead and Zinc Study Group (ILZSG).
The demand from the European region is likely to remain more or less stable with a modest rise of 0.7% in 2017. The rise in demand in Belgium, Italy and the Russian Federation will be partially offset by reduced demand from France. The apparent usage by the US will recover during the current year. China and India will see rise in refined zinc metal demand, whereas Thailand is likely to report fall in demand. The demand may remain stable in Japan and Korea.
Meantime, refined zinc mine production is forecast to surge higher by 6.7% to 13.70 million tonnes in 2017. The mine production had declined by 5.5% in 2016.
The completion of maintenance works at Hindustan Zinc’s Rampura Agucha operation in India will lead the production recovery. ILZSG forecasts increased output from Peru’s Antamina mine and Finland’s Sotkamo operation. It also expects higher output from mines in China, Australia and Eritrea.
The refined zinc metal output will rise 2.6% to 14.08 million tonnes in 2017, mainly on the back of rise in output by China and India. Ongoing strike at Valleyfield refinery may badly impact Canadian production. Damages caused by floods may affect production from Cajamarquilla zinc plant in Peru. Similar decline in refined zinc metal production is anticipated from Thailand and Korea.
The global demand for refined zinc metal will exceed supply in 2017, despite sharp rise in zinc mine output. ILZSG forecasts the refined zinc metal to end in deficit of 226,000 tonnes.