Preliminary data from the International Lead and Zing Study Group reveals the global market for refined zinc metal was in deficit from January to May this year with reported total inventories also declining over that same time frame.
Decreases in output from India, Australia, Peru, Ireland and the U.S. led to the significant 7.7% reduction in global zinc mine production in the first half of 2016, compared to the same time period in 2015.
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“World output of refined zinc metal declined by 3.6% with reductions in India, Japan and the U.S. being partially balanced by increases in the Republic of Korea and Namibia,” the ILZSG report stated.
The report also stated that world demand for refined zinc metal grew 0.6% due to the rise in Chinese apparent usage, to the tune of 8.2%, that offset declines in Japan, Taiwan, the Republic of Korea and the U.S.
Lastly, Chinese imports of zinc contained in zinc concentrates fell substantially, by 26% with the country’s net imports of refined zinc metal growing by 112%.
Metal Prices Bullish on Global Stock Markets
Investors are becoming more positive on the health of the global economy, which could translate to industrial metals demand growth. The reason? Global stock markets continue to rise, and have already made up for their losses following Brexit.
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