Refined zinc use will grow by 3.5 percent in 2016

According to forecasts of the MGISC, global demand for refined zinc will grow by 3.5 percent to 14.33 million tons in 2016. At the same time, the world demand for refined zinc will exceed supply by 352 thousand tons during the current year.

Growth in infrastructure investment in China will be the main driver of global demand growth. Chinese demand is projected to grow 4.5 percent over the course of the year. Usage in Europe is expected to remain stable after growing 3.2 percent in 2015. South Korea expects a sharp 13.1 percent rise in demand. MGISC predicts an increase in demand in other countries, including India (4.1 percent), Japan (4.2 percent) and the United States (3.1 percent).

Zinc mine production is forecast to decline 9.4 percent in China due to the recent mine closures and production cuts. Australia's zinc mine output will decline by 46 percent, mainly due to the closure of the MMG century mine in August last year. Reduced production of Glencore, IHO resources and Perilya will also contribute to lower productivity. Global zinc mine production is expected to decline 1.4 percent to 13.27 million tonnes in 2016. Production is likely to be lower in Ireland, India, Kazakhstan, Korea, Saudi Arabia and the United States.

In addition, global production of refined zinc will increase by 0.5 percent to 13.98 million tonnes in 2016. China's zinc production is forecast to increase by 4 percent. However, the MGISC foresees a 24 percent reduction in production in the United States.