China is the main player on the market contributing approximately 50% of global zinc consumption. China also happens to be one of the largest zinc mining countries in the world, as the rich zinc deposits of China from production has been annually increasing. Many research has it that the Chinese zinc mining activities have emphasized on the perspective of resource utilization. China has been able to achieve the top zinc miner in the world, in the year 2016 by putting out 4.5million MT out of the 4.3 million MT it produced in 2015.
As of now in China the mining industries have been favorable to the world market of zinc, they have been a top leading country involved in mining for years, and they are known to be the largest producer and consumer of zinc. China is not only the world’s biggest zinc consumer and producer, but they also played a big part in the progress of zinc which is why zinc performed well in the previous year, growing the demand for the metal which was supported by strong property sales in the country and also by the Chinese governments which have pushed them for more projects on infrastructure.
So far this year zinc prices have been declined by 2 percent, this has led to the falling demand for steel in China and China has slashed 31.7 million tons of zinc so far in 2017 which is the 63 percent of their target of 50 million tonnes despite the fact that they had to cut 65 million tons in 2016
Despite all these facts, the Chinese steel outputs have sky rocketed to 4.6 percent in the first quarter of the year to 201.1 million tons, after about 1.2 percent increased to 808.4 million tons last year.
We have been able to see that China has been able to work things out in the zinc market and it keeps on giving them what they really need. China is a great miner in zinc which depicts a bright future for them. China has been in need of more zinc in order for them to achieve some ambitious infrastructure projects which include the construction of the biggest megacities the world has ever seen, to create a modern day silk road through Asia and Europe, with a very big and extensive network of highways, railways and underwater tunnels.
Bringing all these facts into consideration, we will be able to assume that China’s Zinc Production performance in the coming months would be excellent, given the tightening prospects of the refined market and the drawdown in the stock. We are expecting the zinc price to gain more momentum in the coming months. China has been affecting the zinc market very greatly with their rate of production and consumption, this, however, has given us the idea that there is every potential for the zinc price to soar higher.