The International Lead and Zinc Study Group has released preliminary data on the global market for refined zinc, and found a notable surplus from January to April 2016 with total reported inventories increasing during that time.
The ILZSG also found that an 8.1% reduction in global zinc mine production was mostly due to decreases in India, Australia, Ireland, Peru and the U.S.
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Meanwhile, refined zinc metal production increases in Namibia and the Republic of Korea were offset by reductions in Japan, India and, once again, the U.S., leading to an overall global reduction of 3.4%.
The ILZSG states: “Global refined metal usage over the first four months of 2016 was at the same level as the corresponding period in 2015 with rises in China and Europe being offset by decreases in Japan, Taiwan (China) and the United States.”
The group concluded that Chinese zinc imports contained in zinc concentrates fell by 20% while refined metal net imports grew by 163%.
Zinc Storage Under Fire
Recently, our own Jeff Yoders covered the lawsuit over zinc storage in his Week-in-Review. Yoders wrote: “Glencore‘s Pacorini warehouse operations business will have to defend the suit as they seemingly falsified documents at the center of the gripes from customers.”
The lawsuit by U.S.-based investors deals with falsified orders and are specifically designed to conceal when and where metal entered Pacorini’s New Orleans warehouse complex.
You can find a more in-depth zinc price forecast and outlook in our brand new Monthly Metal Buying Outlook report. Check it out to receive short- and long-term buying strategies with specific price thresholds.