Global zinc investment horizon outlook Q4 2022

The medium-term outlook for zinc demand will be dominated by inflation, and the response and consequences of the efforts of policy makers to bring it under control. However, the easing of covid restrictions in China and resilient demand in other parts of Asia will result in global zinc demand bouncing back in 2023. Despite the growth in global demand, refined production is constrained, whilst the ramp-up of new mines and higher output from a few existing mines is set to cause mined zinc production to rise strongly before slowing in the latter half of this decade. With refined production constrained, the growth in mine output will cause surpluses in the concentrate market. The refined market however, will remain tight, and low global stocks of metal are forecast to support elevated prices over the near term. It is not until the second half of the decade that surpluses in the refined market will result in rising stocks and a retreat in the zinc price.