Global zinc surplus expected to hit 260,000 mt in 2009: ILZSG
platts.com
London (Platts)--23 Apr 2009
World supply of refined zinc is expected to exceed demand by just over 260,000 mt in 2009, according to a statement from the International Lead and Zinc Study Group, published Thursday.
The group said that the figure was reached after taking into account the latest forecasts received from member countries together with purchases by the Chinese State Reserve Bureau and expected releases from the US Defense National Stockpile.
"After having taken into account the recent closure of the refineries at Datteln in Germany, Balkhash in Kazakhstan and Copsa Mica in Romania, as well as production cuts in Belgium, Brazil, Bulgaria, Japan, the Netherlands, the Russian Federation, the United States and a number of other countries, it is expected that global refined zinc metal output will fall by 4% to 11.18 million mt in 2009," the ILZSG said in the statement.
Production in India is expected to continue to grow strongly as a result of recent expansions in capacity at Hindustan Zinc's operations, and it is anticipated that output in China will rise by 2.2%.
In 2009, global usage of refined zinc metal is forecast to decline by 4.9% to 10.92 million mt, the largest reduction since 1975. Demand in Europe is forecast to fall by 12%, in the US by 9.2% and in Japan by 12.9%, the ILZSG said.
In China, a combination of increased spending on infrastructure-related projects and purchases of refined zinc metal by some provincial governments is expected to positively influence apparent usage and a rise of 4.6% is predicted.
The group, which held its spring meeting in Lisbon on Wednesday, said that while the zinc metal market would remain in surplus, global zinc mine output was forecast to decrease by 6% to 11.08 million mt in 2009, primarily as a result of the large number of cutbacks, closures and startup delays
announced over the past six months.
Significant reductions in output are anticipated in Australia, Canada, China, Peru, Portugal and the US. The ILZSG said that these reductions would be partially offset by the opening of new capacity in Finland and Spain, and higher production in Bolivia, India, Iran and Pakistan. |
