MCX Tips

World Bureau of Metal Statistics (WBMS) showed that zinc market was in surplus by 217000 tonnes during January to August 2012 which compares with a surplus of 566000 tonnes recorded in the whole of the previous year. Reported stocks rose by 56000 tonnes in the first eight months of the year with almost all of the increase recorded at LME warehouses. LME stocks represented 75 percent of the global total.

Production of locally refined metal in China fell by 7.4 per cent compared with the previous year. According to Chinese customs data, imports remain at historically high levels. Much of the Chinese imports originate from other Asian countries. Exports reported by Japan, South Korea and Taiwan confirm the Chinese imports.

Global refined production fell by 3.1 percent and consumption fell by 0.9 per cent compared with the levels recorded one year earlier. Japanese demand was, at 291.9 kt, 12.6 per cent below the equivalent total for January to August 2011. In August 2012, slab zinc production was 1.036 million tonnes.

World demand was 74000 tonnes lower than corresponding period previous year to 8.11 million tonnes. Chinese apparent demand was 3.49 million tonnes, which is just over 43 per cent of the global total. Chinese demand rose by 1.7 percent compared with the first eight months of 2011. In August 2012, slab zinc consumption 1.063 million tonnes.