The global zinc market was in surplus in Q1 2015

The latest statistics published by the International Lead and Zinc Research Group (IGISC) indicate that the global zinc market had a surplus of 140,000 tonnes in the first quarter of this year. Total zinc stocks on the London Metal Exchange (LME) decreased by 180 thousand tonnes during the quarter. Meanwhile, stocks on the Shanghai Futures Exchange rose 57 thousand tons. Inventories reported by producers rose 40,000 tonnes in the first quarter of this year.

Zinc output declined in China. However, this drop in production was offset by increased output from mining companies in other countries, including Australia, India, Peru and Sweden. Overall, zinc mine output rose 4.3 percent during the first quarter of 2015 compared to the corresponding period last year.

Production of refined zinc metal over the three-month period was 3.414 million tonnes, up 4.3 percent from 3.153 million tonnes during the corresponding period in 2014. Refined zinc production increased in Canada, China, India and the Republic of Korea. Interestingly, China's refined zinc imports fell 78 percent in Q1 2015 compared to Q1 2014.

Global demand for zinc products increased by 2.3 percent to 3.274 million tonnes in the first quarter of 2015. At the same time, use in China increased by 3.9 percent. The US reported a 13.9 percent rise in demand during the quarter. Higher levels of zinc use were observed in the Republic of Korea, Africa and Thailand. Apparent consumption in the Europe region remained unchanged during the quarter. All data compared to the first quarter of last year.

Preliminary data from the MGISC indicate that during the month of March, the global output of zinc mines amounted to 1.08 million tons. Global production of refined zinc reached 1.144 million tonnes, while global demand for zinc was 1.107 million tonnes.