The global market for refined zinc metal was in deficit by 277,000 mt from January to October 2016, with total reported inventories falling by 53,000 mt over the same period, according to preliminary data released Wednesday by the International Lead and Zinc Study Group.
For the first 10 months of last year, the market was in surplus by 201,000 mt, according to ILZSG data.
A rise in global usage of refined zinc metal of 3.7% year on year to 11.599 million mt was primarily influenced by an increase in Chinese apparent demand of 9.3%, which more than offset a 14% reduction in the US, the ILZSG noted. Usage in Europe rose by 0.9% year on year.
Chinese imports of zinc contained in zinc concentrates fell by 44.5% to 631,000 mt in January-October, but the country's net imports of refined zinc metal increased by 26% to 359,000 mt.
Despite rises in output in China and the Republic of Korea, world refined zinc metal output declined by 0.6% over the period to 11.322 million mt, mainly as a consequence of reductions in Australia, India, Mexico and the US.
Global zinc mine production of 10.887 million mt was down by 1.8% compared to the corresponding 10 months of 2015.
"This was mainly due to reductions in Australia, India, Ireland and Peru that more than offset increases in Bolivia, China and the Russian Federation," the ILZSG said.
