Refined global zinc usage is to increase 4.5% this year to 13.58 million mt, the International Lead & Zinc Study Group said Thursday.
"It is anticipated that, after having risen by 4.9% in 2013, world usage of refined zinc metal will increase by a further 4.5% to 13.58 million mt this year," the ILZSG said.
The group expects usage in China, which currently accounts for 44% of total world zinc demand, to increase by 5.8% in 2014.
In Europe and the US, increases next year of 3% and 1.7% respectively are anticipated, it said.
On the supply side, global zinc mine production is predicted to rise by 2.6% to 13.57 million mt in 2014.
This is mainly a consequence of further growth in Chinese output and increases in Australia driven primarily by increases in production at Glencore Xstrata's Mount Isa and McArthur River operations and Perilya's Broken Hill mine," the ILZSG said.
Chinese production of refined zinc metal is expected to rise by 7.3% in 2014; this is the main factor behind an anticipated overall increase in global production of 4.4% to 13.46 million mt.
The ILZSG expects global demand for refined zinc metal to exceed supply in 2014. It is forecasting a deficit of 117,000 mt.
