Global Refined Zinc Market Slips into Deficit in 2024, Reports ILZSG

ILZSG

Declining Supply Triggers Market Deficit Despite Steady Demand

The global refined zinc market fell into a deficit of 62,000 tonnes in 2024, as supply dropped while demand remained stable, according to the International Lead and Zinc Study Group (ILZSG). This marks a significant change from the previous year, when the zinc market recorded a surplus of 310,000 tonnes.

Zinc Mine Output Drops Across Key Regions

Global mined zinc output declined by 2.8% year-on-year to 11.89 million tonnes. Major contributing factors included a sharp 31.5% drop in Canada, a 1.5% decrease in China, and a 13.5% fall in Peru due to lower production at the Antamina mine. European zinc mining also slipped by 9.7%, mainly from Ireland and Poland. However, higher output in Bolivia, Mexico, and the Democratic Republic of Congo—where Ivanhoe Mines launched the Kipushi mine in June—helped offset these declines.

Refined Zinc Production and Use Trends

Refined zinc production dropped 2.6% in 2024, reaching 13.55 million tonnes. The fall was primarily due to limited concentrate availability and production cuts in China, Japan, South Korea, and Canada. Some recovery was seen as France, India, and Germany increased their output, especially with the Nordenham smelter resuming operations in March. Meanwhile, global refined zinc consumption edged up by 0.1%, driven by higher demand in Brazil, India, South Korea, Mexico, Turkey, and Vietnam. Consumption declined in China, Europe, and the US. Notably, China’s imports of zinc in concentrate form also fell by 13.1% to 1.96 million tonnes. In December alone, refined zinc use outpaced production, creating a monthly deficit of 41,100 tonnes.