Due to encouraging indicators in China’s trade data, which showed growth in both imports and exports in April, suggesting a resurgence in both domestic and international demand, zinc prices increased by 0.23% yesterday, closing at 258.5. Given that China is a major producer and consumer of zinc, this uptick in trade activity is encouraging for the global zinc market.
The decision by the Swedish mining company Boliden to resume operations at its zinc mine in Ireland, Tara, further bolstered market sentiment. After being put on hold in 2023 because of low zinc prices, the mine will start up again in the fourth quarter of this year, with full production anticipated to begin in January 2025.
Parallel to this, after being put on hold in January, Nyrstar’s Budel smelting operations in the Netherlands will start up again, in part because of increased zinc prices. Due to Budel’s strategic reaction to market conditions, operations have been more flexible since late 2021.
According to data from the International Lead and Zinc Study Group (ILZSG), the global zinc market had a surplus of 40,100 metric tonnes in February, widening from 12,300 tonnes in January, despite these encouraging improvements. The persistent difficulties in maintaining a balance between the supply and demand of zinc are indicated by this excess, and this could have an immediate impact on price dynamics.
