According to data from the International Lead and Zinc Study Group (ILZSG), the global zinc market surplus widened to 40,100 metric tons in February from 12,300 tons in January.
During the first two months of 2023, the global surplus stood at 53,000 tons, compared to a deficit of 8,000 tons in the same period last year.
The increase in the global zinc market surplus suggests that supply has outpaced demand, putting downward pressure on zinc prices. This comes amid ongoing volatility and uncertainty in the commodities sector, with factors such as geopolitical tensions and economic conditions influencing the supply and demand dynamics.
The widening surplus could indicate a potential oversupply situation in the global zinc market, which may prompt producers and market participants to adjust their strategies and output levels to maintain a balanced market.
Zinc is a key metal used in galvanizing steel, as well as in the production of various other products. The market’s performance is closely tied to the health of the global economy and industrial activity.
The ILZSG’s latest data provides a snapshot of the current state of the global zinc market, which will be closely monitored by industry stakeholders as they navigate the evolving market conditions.