Commodity market report
| |
29 Pages

Global zinc short-term outlook February 2016

Global zinc short-term outlook February 2016

Report summary

Improved sentiment, short covering and strengthening fundamentals all helped the zinc price put in the strongest performance of all the LME metals and lifted it to its highest level since October 2015. 

What's included?

This report includes 2 file(s)

  • Global zinc short-term outlook February 2016 PDF - 511.52 KB 29 Pages, 15 Tables, 6 Figures
  • Data Tables Zinc STO February 2016.xls XLS - 294.00 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
      • Price forecasts and global quarterly supply and demand balance
  • Demand
    • Global
    • USA
    • China
  • Supply
    • Concentrate market
    • We expect lower imports in 2016 This year, we expect a sharp reduction in zinc concentrate imports from Glencore's Australian operations following the production cuts at Mount Isa and McArthur River, with about 200kt/a of McArthur River bulk concentrate still destined for China.
    • ROW mine production is expected to contract by about 8% in 2016 following the planned closure of Century and Lisheen and the cutbacks at other operations including Glencore's. If ROW smelters are to maintain output at the same rate as last year, there will be significant displacement of concentrate around the world that may well limit the availability of concentrate to be exported to China from Peru, Bolivia, Chile and Mexico.
    • Last year China imported 1480kt Zn in concentrate. This year we forecast a sharp reduction to 788kt Zn.
    • February 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 consumption - (kt Zn)
      • Global zinc mine production (kt Zn)
      • Zinc stocks, prices and premiums

In this report there are 21 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Supply-demand balances
    • Zinc puts in strong performance
    • US and Asian premiums move in opposite directions
    • Exchange stocks and LME zinc price rise
    • Supply-demand balances: Table 1
  • Demand
    • Strong growth in large-scale US solar power sector forecast
    • Tax cut continues to boost Chinese automotive sales
    • Galvanized sheet and metallic coated sheet production
    • Key indicators of zinc consumption
  • Supply
    • Treatment charges $/t of concentrate
    • Concentrate Balances
    • Chinese sources of concentrate imports
    • Mine production cuts
    • Supply: Table 4
    • Supply: Table 5
    • Supply: Table 6
    • Supply: Table 7
    • Global zinc smelter production (kt Zn)
    • Supply: Table 9
    • Supply: Table 10
    • Global slab zinc supply/demand balance (kt)
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.