Zinc Prices Reach Decade High but to Ease 4% in 2022

IndexBox has just published a new report: 'World - Zinc - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

In January 2022, the average annual zinc price $3,599 per tonne, picking up 6% from December 2021. The price is forecast to ease 4% y/y to approx. $2,880 per tonne in 2022 due to excessive market supply.

After seasonal hikes, zinc prices are forecast to stumble due to an expected overproduction. From December 2021 to January 2022, the average price for zinc of high grade and 99.95% purity rose by 6% to $3,599 per tonne, hitting the 14-year high. The price is forecast to fall by 4% to approx. $2880 per tonne this year.

In 2021, global mine production of zinc soared by 8% y/y to 13K tonnes of contained metal. Mining intensity is projected to remain high this year, resulting in a production-to-consumption surplus and price reduction. Although few zinc plants in the EU have suspended their work due to rising energy costs, China's production increase is to offset the drop in European output.

Global Unwrought Zinc Exports

In 2020, approx. 4.7M tonnes of zinc were exported worldwide, increasing by 8.3% compared with the previous year. In value terms, zinc exports totaled $11.4B (IndexBox estimates).

The shipments of the eleven major exporters of zinc, namely South Korea, Canada, Australia, the Netherlands, Spain, Kazakhstan, India, Peru, Finland, Norway and Japan, represented more than two-thirds of total exports.

In value terms, the largest zinc supplying countries worldwide were South Korea ($1.4B), Canada ($1.2B) and Australia ($941M), with a combined 32% share of global supplies. These countries were followed by the Netherlands, Spain, India, Kazakhstan, Finland, Peru, Norway, Japan and Belgium, which together accounted for a further 47%.

Source: IndexBox Platform