China zinc demand to outstrip mine production: Antaike

BEIJING (Scrap Monster): China, the largest zinc resources in the world, zinc demand to outstrip local mine production, according to the latest report “Zinc – China and the World” released by the China-based Antaike.

According to the report, China's proposed increase in production of mined zinc will not keep pace with demand for refined zinc in China and the rest of the world.

A recent Barclays report also echoed the same sentiment and suggested that zinc markets could turn into shortage over the coming years, thus boosting prices. Mine closures, declining ore grades and decreasing Chinese production will result in a “rapid tightening in metal supply and a period of much higher prices to develop in 2013 onwards”

Globally, the main areas of zinc production are China with 3,700kt, 1,500kt in Peru and 1450kt from Australia. The distribution of zinc resources around the world is uneven. China has the largest resource base followed by Australia, Kazakhstan, Mexico and Peru.

Chinese resources contain more than 10 times the amount in Australia’s resource base. The rate of increase in zinc usage has most dramatically been seen in China over the past decade and is expected to continue in China and other emerging economies such as India, Vietnam and Brazil.

The report, Zinc – China and the World, is a collaboration between Sweden-based Raw Materials Group (RMG), and China-based Antaike, the leading China metals information provider. It covers the global zinc market from mine supply to refined consumption. It further looks at the structure of the industry including Chinese companies and discusses related government interaction and environmental regulations.