MCX Zinc A Major Beneficiary in Terms of Value

Zinc remained as a major beneficiary in terms of value rise. The prices of Zinc gained by 16.5% to Rs 213 per kg in March 2018, compared to Rs 183 per kg in February 2018. Refined zinc metal recorded a deficit of 495000 tonnes. Zinc mine output in India increased by a significant 33.7% in 2017. A rise in Peru was influenced by higher output at the Antamina mine, and in Eritrea by a rise at the Bisha mine which is now producing at close to full capacity. Zinc concentrates supply was also higher in Europe, Canada, Mexico and Turkey.

As a consequence, and despite a further significant reduction in Australia, overall world production increased by 3.6% compared to 2016. World output of refined zinc metal in 2017 was at a similar level to that in 2016 at 13.72 million tonnes, with a major 30.4% increase in India being balanced by a significant fall in Canada and reductions in China, Japan, the Republic of Korea, and Peru. A rise in global refined zinc metal usage of 2.6% was primarily driven by increases in Australia, Brazil, China, Japan and Taiwan (China).