Base Metals Preview: Zinc Market Shortfall More Than Doubles This Year

Base Metals Preview: Zinc Market Shortfall More Than Doubles This Year

Dec 15, 2017 09:12 IST capital market

World Bureau of Metal Estimates estimates showed that zinc market was in deficit by 504 kt during January to October 2017 which compares with a deficit of 202 kt recorded in the whole of the previous year. Reported stocks rose by 7.8 kt during October. LME stocks rose by 0.8 kt in October and ended the month 174 kt lower than at the end of 2016. LME stocks represent just under 35 percent of the global total. Chinese demand increased by 0.8 per cent compared with the previous year.

Production of locally refined metal in China fell by 2.2 per cent compared with 2016. Chinese imports of mostly special high grade metal were 61 kt in October which brought the year to date figure to 453 kt, 77 kt higher than in January to October2016. Global refined production rose by 0.1 per cent and consumption was 2.5 per cent higher than the levels recorded one year earlier. Japanese demand was, at 444 kt, 14.3 per cent above the equivalent total for January to October2016.

World demand was 288 kt higher than for January to October 2016. Chinese apparent demand was 5575 kt which is almost 47 per cent of the global total. No allowance is made in the consumption calculation for unreported stock changes.In October 2017 slab zinc production was 1230.7 kt and consumption 1236.8 kt.

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