Trade Body Publishes Zinc Metal Outlook for 2019 and 2020

SEATTLE (Scrap Monster): The International Lead and Zinc Study Group (ILZSG), after its annual meeting held in Lisbon, Portugal on 24^th and 25^th of this month, published detailed outlook on zinc for 2019 and 2020.

The Group foresees marginal decline by 0.1% in world refined zinc metal demand in 2019 over the previous year. The full-year demand is projected at 13.67 million tonnes in 2019. However, the demand is likely to rise by 0.9% in 2020 to hit 13.80 million tonnes. After two continuous years of decline, the Chinese demand is expected to record marginal growth by 0.6%. Also, the refined zinc demand in China is projected to expand by further 1.2% next year.

ALSO READ: Global Market for Refined Zinc Recorded Notable Deficit

The world zinc mine production will increase by 2% to 13.02 million tonnes during the current year. In 2020, the production will total 13.64 million tonnes, jumping higher by 4.7%. The Australian mine output is likely to witness significant rise in 2019. The country’s output will flatten out in 2020, ILZSG report said.

The global refined zinc metal production is expected to increase by 2.5% to 13.49 million tonnes in 2019, mainly driven by 7.1% surge in Chinese production. ILZSG forecasts rise of 3.73% in world output in 2020. The European production is likely to fall by 3.5% in 2019. Meantime, Mexican refined zinc production is forecast to increase in 2019 and 2020, backed by Torreon smelter expansion.

The global zinc market will end in a deficit of 178,000 tonnes in 2019. The market will turn into surplus of 192,000 tonnes in 2020.