Commodity market report
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29 Pages

Global zinc short-term outlook August 2016

Global zinc short-term outlook August 2016

Report summary

The decline in spot treatment charges into China from last year's average of $200/t to the current level of $105/t has provided fundamental evidence of the tightening of the concentrate market. This clear improvement in zinc's fundamentals has been the primary driving force behind the rise of the zinc price this year.

Although the price rally lost momentum in August, it still managed to climb to its highest level since May 2015, and reaffirmed zinc's position as the top performing exchange traded metal with a year to date gain of 45%. As the tight concentrate market starts to constrain refined metal production, we forecast that inventories of refined zinc will be drawn down to critically low levels around the middle of 2017 providing additional fundamental support to further price strength.

What's included?

This report includes 2 file(s)

  • Global zinc short-term outlook August 2016 PDF - 497.41 KB 29 Pages, 14 Tables, 10 Figures
  • Data Tables Zinc STO August 2016.xls XLS - 290.00 KB


As global demand weakens and commodity prices fall, we're seeing a challenging environment in the metals and mining industry. Mining companies are increasingly coming under pressure to reduce operating costs, causing many to shift their strategic planning, delay new investments and look to long-term future growth.

This Zinc Short Term Outlook report provides a detailed breakdown of global supply and demand balances in this market, as well as price forecasts.

Mining companies, investment banks and investors can use this report to understand the future direction of the ferrous and base metals market. It will also help you assess the impact of key industry issues and events on market balances and pricing.

From acquisitions to investments, Wood Mackenzie helps you plan, forecast and benchmark in the metals markets. Our proprietary database and analyst expertise combines robust production, consumption and pricing data with detailed analysis to identify market opportunities.

We give you a holistic view of the ferrous and base metals markets so you have the confidence to make strategic decisions.

  • Executive summary
    • Zinc key forecasts
  • Supply-demand balances
    • Market Developments
  • Demand
    • Global
    • China
    • Japan
      • Galvanized sheet and metallic coated sheet production
  • Supply
    • Concentrate market
    • August mine production news
      • Zinc mine capability, market adjustment and production (kt Zn)
    • Smelter production news
      • Zinc smelter capability, market adjustment and production (kt Zn)
      • Global zinc mine production (kt Zn)
      • Zinc stocks, prices and premiums

In this report there are 24 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Supply-demand balances
    • August and September are popular months for delivering zinc into New Orleans
    • Exchange stocks are not yet at critically low levels
    • The zinc price breaks away from the other metals
    • Price forecasts and global quarterly supply and demand balance
  • Demand
    • Falling prices prompt galvanized sheet production cuts by CISA members
    • Chinese automotive production growth slowing
    • Japanese brass production has been hit by falling automotive output
    • Demand: Table 1
    • Key indicators of zinc consumption
  • Supply
    • Index of smelter income from imported concentrate
    • Index of smelter income from domestic concentrate
    • Treatment charges $/t of concentrate
    • Chinese sources of concentrate imports
    • Concentrate Balances
    • Index of monthly Chinese mine production
    • Supply: Table 3
    • Supply: Table 4
    • Global zinc consumption - (kt Zn)
    • Supply: Table 6
    • Global zinc smelter production (kt Zn)
    • Supply: Table 8
    • Chinese trade data (kt)
    • Global slab zinc supply/demand balance (kt)
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