SMM News: July 17 News, the World Bureau of Metal Statistics (WBMS) data released on Wednesday showed that the global zinc market supply gap of 47000 tons from January to May 2019, compared with a surplus of 67000 tons for the whole of 2018.
For the period from January to May, an increase of 27000 tons was reported in inventories and a net increase of 39000 tons in Shanghai warehouses. LME inventories fell every month in the first quarter, but increased in April and May, with inventories down 29000 tons at the end of May from December 2018. LME stocks account for 18 per cent of the world's total, and most of the metals are stored in warehouses in the US and the Netherlands.
Global refined zinc production fell 2.8 per cent year-on-year, while consumption rose 3.5 per cent year-on-year. Japan's apparent demand was 217400 tons, down 2.9 per cent from the same period last year.
Global demand increased by 186000 tons over the period from January to May 2018. China's apparent demand is 2.552 million tons, accounting for 47 per cent of the global total. Unreported inventory changes are not included in consumption statistics.
In May 2019, flat zinc production was 1.1198 million tons and consumption was 1.1365 million tons.