Reuters reported that according to Andrew Michelmore, chief executive of China’s MMG Ltd. (HKEX:1208), the global zinc deficit has increased faster than anticipated, partially due to increased “demand growth in China to rust-proof steel for cars.”
The company’s Century mine is expected to be depleted next year.
As quoted in the market news:
‘Growth has been higher than expected,’ [Michelmore] said on Thursday, referring to demand.
He said demand in China had picked up as companies sought galvanizing technology, following a push by the International Zinc Association to tout the benefits of coating steel with zinc to prevent rust.
‘The reaction has been quite spectacular,’ said Michelmore, who is also chairman of the International Zinc Association. ‘That’s having a flow-on effect in the demand for zinc.’