ILZSG: Demand for zinc will fall and can only grow in the next year
According to the latest forecast of the International study group for lead and zinc (ILZSG), global demand for zinc will decline by 0.1% this year to 13.67 million tons and increased by 0.9% in 2020 to 13.80 million tons.
it is Expected that Chinese demand will recover after declining in the past two years. It is projected that the demand for zinc in China will grow by 0.6% in 2019.
"Despite the sharp fall in production of vehicles, production in electroplating sector rose during the first seven months of 2019, compared to the same period in 2018, helped by growth in construction and investment in public infrastructure", - says the report of the ILZSG.
it is Projected that Chinese demand will grow by 1.2% in 2020.
meanwhile, European demand is expected to fall by 3.7% this year amid the decline in Germany and the UK. Fall occurs as a result of the elimination of British Steel at the beginning of this year; currently, the official receiver in the UK is looking for a buyer to grab a sick firm. The negotiations Include Holding, a division of the Turkish military pension Fund OYAK, has not carried out the transaction within the 10-week exclusivity period.
However, in 2020, the consumption of zinc in Europe will grow by 0.5%.
According to forecasts, in other regions demand in India and Japan will fall, and in the first projected recovery in 2020 and the second a further decline.
terms of supply, the production of zinc is forecast to grow 2% this year and 4.7% in 2020.
"the Significant growth of mining in Australia this year will be mainly a consequence of the commissioning of the Woodlawn tailings pond in may and increase contribution from the mine at MMG Dugald river mine Lady Loretta Glencore, as well as projects of the tailing ponds managed by New Century Resources and hellyer's, which were commissioned in 2018," the report says ILZSG.