ZINC
Zinc prices reached a decade high in August 2017 and have continued to trade above the $3,000-per-tonne level since then. There is now tremendous excitement in the zinc market with prices up ???over 21% since January . Supply worries and a strong Chinese demand outlook supported the base metal’s rapid price rally.
Base metals are near multiyear highs amid solid trade data that shows China, the world’s top user, continuing to gobble up commodities while also increasing exports last month signaling healthy demand elsewhere. Prices are also getting support from the dollar’s selloff, which is making metals cheaper for major consumers outside the U.S., such as China.According to the International Lead and Zinc Study Group, global refined zinc metal production is forecast to fall by 1.4 percent this year, to 13.53 million tonnes.?????????
The resulting squeeze in zinc supplies has particularly affected China, which is both the world’s largest zinc consumer and its largest producer, with 4.9 million tons of output in 2015. Chinese manufacturers are now being forced to import zinc for use in cars, household appliances, paints, rubber products and smartphones.
More than 13 million tons of zinc was produced in 2013 worldwide. Sixty percent of this is used for galvanizing to protect steel from corrosion thus prolonging the service life of steel products significantly.
Approximately 15% goes into the production of zinc base alloys, mainly to supply the die casting industry, 14% goes into the production of brass and bronze and 8% into the production of compounds including zinc oxide and zinc sulfate. The remainder is zinc alloys, mainly rolled, utilized in semi-manufactured applications including coinage and architectural applications..
These first-use suppliers then convert zinc into in a broad range of products. By far the largest application area is construction with 45% of all first-use zinc products used in this area. The transportation sector consumes 25% of global zinc consumption and consumer goods – including electrical and electronic appliances – accounts for 23%. The remaining 7% is used for the manufacture of industrial machinery.
