GlobalData’s latest report has forecast that between 2019 and 2022, global zinc supply is expected to grow at a compound annual growth rate (CAGR) of 3.8 percent, to 15.7Mt in 2022.
Simultaneously, the gap between demand and supply is expected to narrow and eventually the market will move into a surplus in 2022, the leading data and analytics company said.
“In 2018, although global zinc supply increased by 1.5 percent to 13.4Mt, it was still short by 1.1Mt, of the global demand of 14.5Mt in that year. Increases in demand of 1.6 percent, 2.2 percent, 1.7 percent, and 3.2 percent from China, Germany, the US, and Belgium, respectively; were the major factors behind the increase in the global demand,” said Vinneth Bajaj, Mining Analyst at GlobalData said.
GlobalData also indicates that up to 100 new projects will be commencing operations between 2019 and 2022 where zinc is either a primary or a secondary commodity being produced.
The productions will offset the growth in global output originating from MMG’s Dugald River project, the commissioning of Century Resource’s New Century mine and the Hellyer tailings project in Australia, as well as a few smaller mines commencing operations across the globe.
Meanwhile GlobalData’s forecasts for initial global zinc production growth is based on the extensive study of mine production growth rates, expansions, upcoming projects and closures across the globe.