Zinc market is in short supply

The world zinc market recorded a deficit in January-July this year. This is after recording a surplus throughout 2015.

According to WBMS, the global zinc market deficit amounted to 106 thousand tons during the first seven months of this year from January to July. It should be noted that the global zinc market reported a surplus of 167 thousand tons throughout 2015.

Global production of refined zinc decreased by 4.7% in the first seven months of 2016. Chinese production of refined zinc decreased slightly, by almost 0.6%, compared to 2015.

Global demand for the metal decreased by 44 thousand tons compared to the period from January to July 2015. Chinese demand rose 5.0% over the previous year. Japanese demand for the metal fell 6% compared to levels recorded in January-July 2015.

In addition, at the LME, zinc stocks fell 12,000 tonnes during the month of July and accounted for 40% of the global stock of the metal. The LME levels at the end of July this year were when compared to 2015.

China's imports of zinc increased, mainly of special high-grade zinc, to 309 thousand tons in January-July 2016, compared with imports of 232 thousand tons in the same period last year.