World Bureau of Metal Statistics announced that the zinc market was in surplus by 293 kt during January to October 2020 which compares with a deficit of 76 kt recorded in the whole of the previous year. Reported stocks increased by 200 kt during January to October which included a net increase in Shanghai of 32.3 kt over the period. LME stocks rose over the January to October period to close 168 kt above the December 2019 level. LME stocks represent 32 per cent of the global total with the bulk of the metal held in Asian and US warehouses. Demand is measured on an apparent basis and it is likely that the full effects of national lockdowns have not been fully reflected in the trade statistics.
Global refined production rose by 1.6 per cent and demand was 1.8 per cent lower than the levels recorded one year earlier. Japanese apparent demand was, at 324.3 kt, 25 per cent below the equivalent total for January to October 2019.
World demand was 199 kt lower than for January to October 2019. Chinese apparent demand was 5685 kt which is 51 per cent of the global total. No allowance is made in the consumption calculation for unreported stock changes.
In October 2020 slab zinc production was 1221.2 kt and demand 1226.9 kt.