Due to a decline in the global zinc market surplus and other variables influencing supply and demand, zinc prices increased by 0.83% to settle at 273.75. According to data from the International Lead and Zinc Study Group (ILZSG), the excess in the global zinc market decreased from 66,800 tonnes in February to 52,300 metric tonnes in March.
This decrease in surplus points to a tightening of the zinc market, which pushes prices higher. The global surplus for the first three months of this year was 144,000 tonnes, down from 201,000 tonnes during the same period the previous year, showing a notable improvement year over year.
China’s production of refined zinc fell by 3.99% every month to 504,600 metric tonnes in April 2024, representing a 6.56% year-over-year decline. In April, China’s domestic production of zinc alloy increased to 95,500 metric tonnes, while domestic smelters’ output fell as a result of regular maintenance and equipment malfunctions in different areas.
Furthermore, April saw a 2.3% year-over-year gain in retail sales in China, which is a 15-month trend but is below market expectations and has moderated from the previous period.
