The latest news about the state of the world market of zinc
As recent statistics on the state of the world zinc market, with the beginning of this year and until may steadfastly observed the overabundance of zinc in the amount of seventy-five thousand tons. Last year experts estimate that the surplus amounted to nearly one hundred and ninety-eight thousand tons, so the latest data show that the total zinc production in the world increased by about four percent, respectively, to five and a half million tons. At the same time, the consumption of this metal in the world increased by six and a half thousand tons, respectively, up to five million and two hundred fifty-five thousand tons of zinc.
According to recent estimates by Research and Markets is expected to increase international market of zinc for four and a half percent in the next five years. This leads to the fact that in 2018 the total cost of this valuable metal will be more than thirty four billion dollars.
It is projected that the leading types of demand that will begin to grow in the near future will be the demand for zinc metal for the manufacture of galvanized steel, which will be applied in the construction sector, at various zinc alloys, and zinc castings for the automotive industry more productive, as well as for investment in more efficient infrastructure development. And, as expected, the obstacle to this would be to increase costs for electricity, as well as attempts zinc producers to reduce fixed costs, further improving product quality.
In the first half of this year the global market has shown a significant excess in the warehouses of refined zinc, the amount of which amounted to an hundred and forty and four thousand tons. Last year the figure was one hundred fifty-seven thousand tons. You can see that change slightly, and also the amount of zinc in the market continues to grow. According to experts, the situation in the market has arisen due to the fact that for the entire reporting period, the production of refined zinc amounted to six and a half million tons, while consumption has become a little less — six million four hundred thousand tons of zinc.
According to experts, if the current situation will continue, then soon more and more quantity of this valuable metal will accumulate in warehouses without realization and consumption, leading to a fairly rapid decline in zinc prices throughout the world, and as a result, exports will start to decrease.