Russian zinc production surges, tightening global zinc concentrate market
Time:Tue, 09 Jul 2024 08:16:47 +0800
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Russian zinc production has surged significantly, introducing new dynamics to the market and meeting rising domestic demand while exacerbating tensions in the global zinc concentrate market. Over the past month, Russian companies have ramped up zinc metal production to leverage domestic demand and reduce reliance on external raw materials. This strategic move underscores Russia's economic vitality and its critical role in global zinc production.
Despite contributing only a small portion of the world's zinc for galvanized steel, Russia's increased output is expected to impact the global market profoundly. By 2027, Russia will be expected to produce 322,000 tons of refined zinc from its Chelyabinsk and Verkhny Ufaley smelters, marking a substantial increase from last year.
The global zinc concentrate market is currently strained, with limited growth in mine production and increased production cuts overseas due to high costs, strikes, and accidents. As the global economy recovers and infrastructure projects advance, the demand for zinc continues to grow. Russia's production surge will heighten supply-demand tensions and potentially drive up zinc prices, prompting greater attention to sustainable and environmentally responsible practices in the industry.
