2014 Annual Report on Zinc Market

Contents
1 Financial overview 1
1.1 International financial overview 1
1.1.1 Strong rebounding of US economy and intention in raising interest rates by the Fed 1
1.1.2 Emerging economies saw rapid currency depreciations with economic stalling 1
1.1.3 Eurozone QE policy was on the agenda due to high deflation and low growth 1
1.1.4 Japan's economic recovery still uncertain after the failure of Abenomics’s short-term goals 2
1.1.5 Global economic recovery less-than-expected and sharp price falls for crude iron ore 2
1.2 Review on domestic macro-economic of China 3
1.2.1 China saw a steady economic growth after overcoming various difficulties 3
1.2.2 Central Bank of China expected to release liquidities in 2015 4
2 Zinc market supply and demand 4
2.1 Global usage of refined zinc metal exceeds output by 296kt in 2014 4
2.2 World zinc mine production by region 6
2.3 Word refined zinc production, consumption and stocks 7
3 Output data analysis 9
3.1 China’s zinc concentrate production up by 0.48% YOY in 2014 9
3.2 Refined zinc production 11
3.2.Asian Metal Copyright33% YOY in 2014 22 4.Asian Metal Copyright1 China’s refined zinc output up by 6.9% YOY in 2014 11
3.2.2 China’s zinc smelting capacity increases by 150,000t in 2014 13
3.3 Operating rates of die-casting zinc alloy plants increase slightly in 2014 14
3.4 Zinc oxide production in 2014 analysis 15
3.4.1 China’s zinc oxide capacity distribution in 2014 15
3.4.2 China’s zinc oxide producers’ operating rate remains below 50% in 2014 16
3.4.3 China’s zinc oxide plants extend about 11,000t of capacity in 2014 17
3.5 China’s zinc powder plants’ operating rate up by 3.4% in 2014 18
4 Import and export data 19
4.1 China’s zinc ore/concentrate imports up by 10.55% YOY in 2014 19
4.2 China’s refined zinc imports down by 8.69% YOY in 2014 21
4.3 China zinc alloy imports down by 13.33% YOY in 2014 22
4.4 China’s zinc oxide imports down by 9.45% YOY in 2014 23
4.5 China’s zinc powder imports down by 3.84% YOY in 2014 25
5 Market review 28
5.1 Zinc futures on the LME increase and stocks decline continuously 28
5.2 Zinc ingot prices increase sharply and zinc smelters’operating rates in a high level 29
5.3 Processing charges for galvanizing zinc alloy decline 30
5.4 Operating rates of die-casting zinc alloy plants increase slightly 31
5.5 Zinc oxide market 32
5.5.1 Market for zinc oxide produced from zinc ingot remains stable 33
5.5.2 Demand for zinc oxide produced from zinc scrap shrinks and profit margin narrows 34
5.5.3 Zinc oxide 90-99% trading thin and prices remain at low levels 34
5.6 Zinc powder market 35
5.6.1 Super-fine zinc powder market active but profit margins narrow 35
5.6.2 Metal zinc powder market trading stable 36
5.7 Zinc sulfate market stable 37
6 Related industry developments 37
6.1 China’s crude steel output up by 0.9% YOY in 2014 37
7.2 Statistics on Chinese automobile output and sales in 2014 37
7 Outlook for 2014 38
Base attribute of zinc 39
1.1 Zinc characteristics 39
1.2 Zinc main applications 39
1.2.1 Galvanization 39
1.2.2 Casting zinc alloy 40
1.2.3 Manufacture copper alloy (brass) 40
1.2.4 Manufacture zinc oxide 40
1.2.5 Manufacture dry cell with zinc cake and zinc plate 40
1.2 Global zinc ore reserves and output 41


Picture 1 Economic growth of China from 2007 to 2014 3
Picture 2 Surplus/deficit of refined zinc on global market 2005-2014 6
Picture 3 China zinc concentrate production 2008-2014 10
Picture 4 China refined zinc production 2009-2014 12
Picture 5 China’s refined zinc production 2011-2014 13
Picture 6 China’s die-casting zinc alloy plants’ operating rates 2012-2014 15
Picture 7 China’s zinc oxide plants’ operating rate from 2012 to 2014 17
Picture 8 China’s zinc ore/concentrate imports 2010-2014 19
Picture 9 China’s refined zinc imports 2010-2014 22
Picture 10 China’s zinc alloy imports 2011-2014 23
Picture 11 China’s zinc oxide imports 2009-2014 24
Picture 12 China’s zinc oxide imports from January to December in 2014 25
Picture 13 Origins of China’s zinc oxide imports in 2014 25
Picture 14 China’s zinc powder imports 2010-2014 26
Picture 15 China’s zinc powder and zinc flake powder imports from January to December in 2014 27
Picture 16 The origins of China’s zinc powder and zinc flake powder imports in 2014 27
Picture 17 Price graph of zinc futures on the LME 2014 28
Picture 18 Graph of zinc stocks on the LME 2014 29
Picture 19 Price graph of SHG zinc ingot on Chinese spot market in 2014 30
Picture 20 Price graph of Zamak-3 zinc alloy in China in 2014 32
Picture 21 Prices for zinc oxide 99.7%min in China in 2014 33
Picture 22 Prices for 325mesh zinc powder 96% metal zinc contained in 2014 36
Picture 23 China’s automobile sales volume from 2006 to 2014 38
Picture 24 Zinc consumption structure 41

Table 1 Word zinc supply and usage 2007-2014 6
Table 2 World zinc mine production by region 2010-2014 6
Table 3 World refined zinc production and consumption by region 2010-2014 7
Table 4 World refined zinc stocks 2010-2014 8
Table 5 China refined zinc production by region in 2014 12
Table 6 New zinc smelting projects in 2014: (Unite: tonne) 13
Table 7 Zinc smelting project under construction: (Unite: tonne) 14
Table 8 The capacity and output of zinc oxide 99.7% distribution in China in 2014 16
Table 9 New zinc oxide plants projects by region in 2014 18
Table 10 China’s zinc tariffs in 2014 22
Table 11 Global zinc ore output, reserves and distribution 41

.Asian Metal Copyright3 Word refined zinc production, consumption and stocks 7 3 Output data analysis 9 3Asian Metal Copyright