LONDON (Scrap Register): The zinc market was in surplus by 146.3 kt during January to October 2018 which compares with a deficit of 431 kt recorded in the whole of the previous year, according to World Bureau of Metal Statistics.
Reported stocks decreased by 91 kt during January to October with a net decrease in Shanghai of 20 kt over the period. LME stocks rose earlier in the year but declined by 58 kt during October to 144.2 kt which compares with 181 kt at the end of 2017.
LME stocks represent 25 per cent of the global total with the bulk of the metal held in US warehouses. Chinese trade data has just become available after a six-month delay for technical reasons.
Global refined production fell by 2.4 per cent and consumption was 6.6 per cent lower than the levels recorded one year earlier.
Japanese apparent demand was, at 438.4 kt, 9.4 per cent above the equivalent total for January to October 2017. The March figure was higher than usual due to a decline of 9.3 kt in producer stocks at the end of the Japanese fiscal year.
World demand was 774 kt lower than for January to October 2017. Chinese apparent demand was 4917 kt which is 45 per cent of the global total. No allowance is made in the consumption calculation for unreported stock changes.
In October 2018 slab zinc production was 1136.6 kt and consumption 1133.8 kt.