Fund purchases and worries about supply dynamics drove yesterday’s slight 0.22% increase in zinc prices, which ended at 247.5. According to data, refined zinc output increased by 4.57% month over month in China, indicating strong output levels.
Even still, the production for January through March surpassed projections, highlighting the ongoing demand for zinc in China, the country that consumes the most of it worldwide.
Along with Germany’s industrial output exceeding market forecasts, positive indications also came from the US manufacturing sector, which saw growth for the first time in 1.5 years. The research organization BMI predicts that after a notable increase in 2023, refined zinc output will pick up steam in 2024.
Completing the Odda mine extension in Norway and the restart of Glencore’s Nordenham smelter in Germany are expected to support global zinc output, although predictions of an annual surplus in zinc production. Though it will be overshadowed by the slow expansion of the world economy, it is predicted that the consumption of zinc will increase by 2.6% globally in 2024.
