What's Happening?
The global zinc market experienced a deficit of 33,000 metric tons in 2025, a decrease from the 69,000-ton shortfall recorded in 2024. This deficit occurred despite a 2.1% increase in refined zinc production, driven primarily by a 6.1% rise in output
from China. However, production outside China fell by 1.6%, with notable declines in Brazil, Kazakhstan, Mexico, and Japan. The International Lead and Zinc Study Group (ILZSG) reported that global refined zinc demand rose by 1.9% to 13.86 million tons, fueled by higher consumption in China, India, the US, Saudi Arabia, Thailand, and Europe. Meanwhile, zinc mine production increased by 5.4%, with significant contributions from Australia, China, India, Iran, Peru, South Africa, and the Democratic Republic of Congo. Despite these increases, the market remained in deficit due to the inability of production to fully meet the growing demand.
Why It's Important?
The ongoing deficit in the global zinc market has significant implications for industries reliant on zinc, such as construction, automotive, and electronics. The shortfall could lead to increased prices, affecting manufacturing costs and potentially leading to higher consumer prices. The deficit also highlights the challenges in balancing production and demand, particularly as consumption continues to rise in major economies like China and the US. This situation underscores the need for strategic planning in zinc production and supply chain management to prevent further market imbalances. Additionally, the deficit may prompt increased exploration and investment in zinc mining and production facilities to meet future demand.
What's Next?
To address the deficit, stakeholders in the zinc industry may need to explore options for increasing production capacity, particularly outside of China, where production has declined. This could involve reopening closed facilities, investing in new mining projects, or enhancing existing operations. Additionally, there may be a push for technological innovations to improve production efficiency and reduce costs. Policymakers and industry leaders might also consider strategies to stabilize the market, such as stockpiling reserves or implementing trade policies to ensure a steady supply of zinc. Monitoring global economic trends and demand patterns will be crucial in making informed decisions to address the ongoing deficit.
