Zinc is an indispensable and important metal in modern industry, where it is mainly used in manufactured galvanized steel for automobiles and home appliances such as refrigerators, air conditioners and washing machines.
Over 13 million tonnes of Zinc metal is produced globally every year, with China playing a significant role in the supply base, producing over than 40% of world production.
Global zinc prices slid to historical lows in 2016, then began to rebound after major producers, including many in China, started to cut production. Just as the cuts were beginning to bite, China announced further forced production cuts as a result of strict environmental inspection and compliance auditing, which added to an already emerging supply shortage. This stimulating zinc prices, which rallied to reach a 10-year high in 2017.
CM began its research into the global zinc industry in 2008 by preparing a ‘10-year outlook’ for China’s Zn supply chain. We concluded in our initial study that China’s zinc prices would, over the long term, be supported by supply shortages caused mainly by grade depletion. CM’s most recent Zn industry research covers the outlook for the global industry and was updated in 2018.
The CM Group has a proven capability to conduct detailed market studies, supply demand analyses and a range of other specific, single scope studies in China as well as other South East Asian countries. CM’s project work regularly sees it’s teams on the ground and amongst the weeds in countries such as Indonesia, Malaysia, the Philippines, Myanmar and Vietnam. Our regional hubs in Singapore, Chengdu and Beijing reduce the need for lengthy field visits because we can deploy our specialist teams to target locations quickly and at low cost.