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Zinc Market: Balancing Supply Surplus and Demand Fluctuations
Zinc, primarily used for galvanizing steel to prevent corrosion, is a vital component in construction, automotive, and infrastructure sectors. The zinc market is currently navigating a complex landscape marked by supply surpluses and demand uncertainties.
Market Challenges
Investment funds have turned bearish on zinc due to an oversupplied market and weak demand projections. The International Lead and Zinc Study Group (ILZSG) forecasts a significant surplus in 2025, driven by increased mine output and refined production.
Demand Dynamics
Zinc demand is closely tied to the construction industry, particularly through galvanized steel. However, economic and policy uncertainties have led to a downgraded growth prediction, impacting overall demand.
Future Outlook
The zinc market's trajectory will depend on balancing production levels with actual demand. Strategic adjustments and monitoring of economic indicators will be crucial for stakeholders navigating this volatile market.
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