Global Zinc Market Faces Deficit as Production Drops 2.6% in 2024
Global refined zinc production declined by 2.6% year-on-year to 13.55 million tonnes in 2024, while consumption increased marginally by 0.1% to 13.61 million tonnes, according to a report by the International Lead and Zinc Study Group. This led to a market deficit of 62,000 tonnes, contrasting with a surplus of 310,000 tonnes recorded the previous year.
The decline in refined zinc production was attributed to limited availability of concentrates, with output reductions in China, Japan, South Korea, the Netherlands, Norway, and Russia. These declines were partially offset by increased production in France, India, and Germany. China, the world’s largest producer, saw a 3.4% year-on-year decline in refined zinc output to 6.6 million tonnes, accounting for nearly 49% of total global production. India’s refined zinc production, however, rose by 2.5% to 857 tonnes.
Zinc mine production also fell by 2.8% year-on-year to 11.88 million tonnes, mainly due to lower output in Canada, China, South Africa, and Peru. The Antamina mine in Peru saw a significant drop in production. European output declined as well, driven by reductions in Ireland and Portugal. In contrast, production increased in Bolivia, Mexico, and the Democratic Republic of Congo, where Ivanhoe Mines commenced operations at the Kipushi mine in June 2024.
Despite the overall supply reduction, zinc consumption increased marginally by 0.1% in 2024. Higher demand in Brazil, India, South Korea, Mexico, Turkey, and Vietnam was offset by declines in China, Europe, and the United States.
Zinc inventories across London Metal Exchange (LME) and Shanghai Futures Exchange warehouses, as well as reported stocks from producers, consumers, and merchants, decreased by 31,000 tonnes to 791,000 tonnes in 2024.
On the LME, the average cash price for zinc rose by 5% to $2,779 per tonne in 2024. As of 1321 IST, the three-month zinc contract was trading at $2,832.50 per tonne, down 0.4% from the previous close.
