Commodities Buzz: Zinc Gains By 24% in April 2018

Zinc remained as a major beneficiary in terms of value rise. The prices of Zinc gained by 24% to Rs 210 per kg in April 2018, compared to Rs 169 per kg in March 2018. Global demand for refined zinc metal is forecast to rise by 2.0% to 13.97 million tonnes in 2018, after remaining stable over the past three years.

Zinc usage in both Europe and the United States is anticipated to rise by 2.1% in 2018. In Europe the rise will be influenced by increases in Belgium and Italy. Apparent demand in China is forecast to increase by 2.2% after declining by 0.8% in 2017. Elsewhere, usage is expected to rise in India and the Republic of Korea, and to remain stable in Japan. After increasing by 1.1% in 2017, global zinc mine production is forecast to rise by 5.1% to 13.62 million tonnes in 2018. This will be driven mainly by an expected 2.3% rise in China and a further 3.9% increase in Peru.

In India, zinc mine output is predicted to be marginally lower due to a fall in output at Hindustan Zincs Rampura Agucha operation. Production in Europe is forecast to increase by 5.2%, primarily as a consequence of higher output in Belgium, Italy, the Netherlands and Norway. Regarding the global market balance, the Group continues to anticipate that global demand for refined zinc metal will comfortably exceed supply in 2018 with the extent of the deficit forecast at 263,000 tonnes.