(Minews) - The global zinc market fell into its first supply deficit in six years in 2013, according to the International Lead and Zinc Study Group (ILZSG).
“Initial data compiled by the ILZSG for the year 2013 show that, after six successive years in which the market had been in surplus, global usage of refined zinc metal exceeded output by 60,000 tonnes,” the research group said in a report.
Largely driven by China, global zinc demand grew much more sharply than supply in 2013.
Refined zinc production reached 13.14 million tonnes in 2013, up 4.9% from 12.5 million tonnes the previous year.
Consumption, meanwhile, reached 13.2 million tonnes in 2013, up 7.4% year-on-year.
A 1% year-on-year increase in global zinc mine output to 13.3 million tonnes was mainly due to rises in Burkina Faso, China, India, Peru and the USA.
These increases more than offset declines in Australia and Canada, where Glencore Xstrata’s Brunswick and Perseverance mines closed during the first half of 2013.
A 4.9% year-on-year rise in refined zinc output was the result of an 11.1% increase in reported Chinese production. Elsewhere, rises in India, Italy, South Korea, Mexico and Peru were largely balanced by reductions in France, Namibia, Norway, Thailand and the USA.
The rise in global demand for zinc metal was primarily due to an increase in Chinese apparent demand of 13.7%. Usage in the USA rose by 4.6%, in India by 12.2% and in Europe by a marginal 0.5%.
Inventories held in LME, Shanghai Futures Exchange and China’s State Reserve Bureau (SRB) warehouses together with those reported by producers, consumers and merchants decreased by 314,000 tonnes to 1.897 million tonnes.
New Orleans holds 68.3% of the 931,000 tonnes of refined zinc metal stored in LME warehouses, the ILZSG noted.
