The International Lead and Zinc Study Group released its Spring 2017 meetings/forecasts report, which found global demand for refined zinc metal is expected to increase 2.6% to 14.30 million tons this year.
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The ILZSG report stated: “There has been little change in European zinc demand over the past five years and further stability is anticipated in 2017 with increases in Belgium, Italy and the Russian Federation being partially offset by a decline in France resulting in an overall rise for the region of a modest 0.7%.”
Furthermore, the ILZSG report found that a significant decrease in apparent demand in the United States last year was most likely influenced “by a drawdown in unreported stocks,” and it’s expected that apparent usage will recover this year to a level similar to what was seen in 2015.
Zinc Supply to Increase with Demand
After experiencing a decline of 5.5% last year, worldwide zinc mine production is expected to grow 6.7% to 13.70 million tons this year.
The ILZSG report stated: “Output at Hindustan Zinc’s Rampura Agucha operation in India, currently the largest zinc mine in the world, fell sharply in 2016 due to the need to strip out waste as the underground section of the mine was developed. This work has now been completed and as a consequence it is predicted that production will recover strongly this year.”
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