Base Metals Updates: Zinc Market Shortfall More Than Doubles This Year

Base Metals Updates

World Bureau of Metal Estimates show that zinc market was in deficit by 504 kt during January to October 2017 which compares with a deficit of 202 kt recorded in the whole of the preceding year. Reported stocks rose by 7.8 kt during October. LME stocks rose by 0.8 kt in October and ended the month 174 kt lower than at the end of 2016. LME stocks represent just fewer than 35 percent of the worldwide total. Chinese demand increased by 0.8% compare with the last year.

Manufacture of locally refined metal in China fell by 2.2% compare with 2016. Chinese import of mostly special high grade metal was 61 kt in October which brought the year to date figure to 453 kt, 77 kt upper than in January to October 2016. Global refined production rose by 0.1 per cent and consumption was 2.5% higher than the levels recorded one year earlier. Japanese demand was, at 444 kt, 14.3% above the equivalent total for January to October 2016.

World demand was 288 kt higher than for January to October 2016. Chinese obvious demand was 5575 kt which is almost 47% of the global total. No allowance is made in the consumption calculation for unreported stock changes. In October 2017 slab zinc production was 1230.7 kt and use 1236.8 kt.