Zinc terms still imply firmness

摘要

Our tabulations continue to point to the zinc concentrate market being in deficit in the first quarter of this year, both in the West and in China (the former East bloc). And we now have a drawdown during this period that is 25,000t greater than what we published in May's Monitor. In the West, concentrateproduction was a little less than we had before because we have a fuller picture of the Canadian and Mexican figures, while smelters' demand for feed was slightly greater. Meanwhile, figures put together by China Nonferrous Industry Association for Chinese refined zinc output in January-April have led us to raise our estimate of concentrate demand in the former East bloc a little too. Our interpretation of the corresponding provincial numbers for zinc mine production still makes us believe that the Chinese total grew by only 2.5-3% in 2011 Q1.