The global zinc market is in short supply throughout 2014

The latest statistics published by the International Lead and Zinc Research Group (IGISC) indicate that the global zinc market had a deficit of 309,000 tonnes during the nine months of 2014.

According to MGISC, the zinc deficit in the international market has worsened significantly compared to a total deficit of 5,000 tonnes in the same nine-month period in 2013. During January-September 2014, global production of refined zinc was 9.95 million tons, while consumption reached 10.26 million tons.

Earlier, the MGISC group predicted an increase in world demand for zinc by 5.1 percent in 2014 to 13.65 million tons. Analysts also envisage further growth of 2.08 percent in 2015 to 14.05 million tons. Demand from China is expected to further improve on the back of increased galvanized sheet production. Meanwhile, demand from other countries in the world, with the exception of China, is expected to remain rather weak.

MGISC also predicts that global zinc production will grow by 1 percent to 13.33 million tonnes in 2014 and another 3.8 percent in 2015 to 13.80 million tonnes. The price of zinc dwarfs other metals this year, with zinc gaining more than 10 percent in recent months alone. This is believed to be related to concerns over supply disruptions for ore. The zinc market remains very attractive for investors, which will give a new impetus to the growth of zinc prices.