Global Zinc demand may fall to 13.67 MT this year: report
LISBON (Scrap Register): Global zinc demand is forecast to fall 0.1% this year to 13.67 million tons and rise by 0.9% in 2020 to 13.80 million tons, the International Lead and Zinc Study Group (ILZSG) sid in its latest report.
Chinese demand is expected to bounce back after sliding for the past two years. China’s zinc demand is forecast to rise 0.6% in 2019.
“Despite a steep fall in automobile production, output in the galvanising sector increased during first seven months of 2019 compared to the same period of 2018, propelled by rises in property construction and investment in public infrastructure,” the ILZSG report stated.
Chinese demand is forecast to rise 1.2% in 2020.
Meanwhile, European demand is expected to fall 3.7% this year, on the back of declines in Germany and the U.K. The latter’s decline comes as a result of the liquidation of British Steel earlier this year; currently, the U.K.’s Official Receiver is seeking a buyer to take over the ailing firm. Talks with Ataer Holding, an arm of the Turkish military pension fund OYAK, failed to materialize a deal during a 10-week exclusivity period.
In 2020, however, European zinc usage is forecast to rise by 0.5%.
Elsewhere, demand is forecast to fall in India and Japan, with a 2020 recovery forecast for the former and a further decline for the latter.
In terms of supply, zinc mine production is forecast to rise 2% this year and by 4.7% in 2020.
“A significant rise in Australian output this year will mainly be a consequence of the commissioning of the Woodlawn tailings project in May and increased contributions from MMG’s Dugald River mine, Glencore’s Lady Loretta mine, and the tailings projects operated by New Century Resources and Hellyer that were commissioned in 2018,” the ILZSG report states.