Zinc production dropped significantly

The latest statistics published by the International Lead and Zinc Study Group (IGISC) indicate that the global refined zinc market is experiencing a deficit of 64,000 tonnes in the first five months of this year. Total zinc reserves during this period decreased by 24,000 tons.

Global demand for zinc increased marginally by 0.6% over the previous year. Although Chinese usage increased 8.2% over this period.

Zinc mine output declined significantly in major producing countries including Australia, India, Ireland, Peru and the United States of America. In general, production of zinc mines decreased by 7.7% in the five months of this year compared to the corresponding period last year.

Refined zinc production in the five months was 5.533 Mt, down 3.61% from 5.740 Mt in the corresponding five-month period in 2015. Refined zinc production increased only in the Republic of Korea and Namibia. On the other hand, production declined in major manufacturing countries including India, Japan and the United States.


Interestingly, China's net imports of zinc concentrate fell 26% during January-May 2016 compared to the corresponding period in 2015. At the same time, China's net imports of refined zinc amounted to 373,000 tons, an increase of 112%.

Preliminary data from the MGISC indicate that the global production of zinc mines was 1.118 million tons during the month of May. Global production of refined metal was 1.139 million tonnes, while global demand for zinc was 1.207 million tonnes during the month.