Zinc prices rose by 0.32% to 268.2, driven by reduced supply and seasonal demand. However, concerns about China’s demand recovery limited gains. Treatment charges for zinc concentrates have reached historical lows due to tight supply.
China’s zinc output has been declining, with potential cuts potentially reducing annual output by 3-4%. The International Lead and Zinc Study Group (ILZSG) reports that the surplus in the global zinc market decreased to 8,700 metric tonnes in June from 44,000 tonnes in May, indicating tighter circumstances overall.
China’s production of refined zinc decreased to 489,600 metric tonnes in July 2024, down 10.3% from June and 11.15% from the previous year. The overall production for the first seven months of 2024 was 3.671 million metric tonnes, which was 2.81% less than the same period the previous year.
Heavy rains in Sichuan, unplanned production halts and controls in Yunnan, Guangdong, and Guangxi, as well as planned maintenance in various locations, all had a significant effect on production.
