BEIJING (Commodity Online): China's consumption of aluminium and zinc soared in February which will impact the global prices.
Following this market analysts said the prices of zinc and aluminium will witness a rise in the coming days.
China's output of primary aluminum reached 1.31 million tonnes during February up 46 KT MoM. Imports of primary aluminum were 19,171 tonnes in February, while exports were 4,739 tonnes with net imports reaching 14,432 tonnes down 16,498 tonnes MoM. SHFE aluminum inventories grew by 36 KT in February while output of primary aluminum jumped in February, resulting in a growth of 29,071 tonnes in apparent consumption of primary aluminum in February compared with January levels.
China's net imports of refined zinc were 15,401 tonnes in February down 14,063 tonnes MoM. Domestic output of refined zinc reached 363 KT in February down 13 KT MoM. It is worth noting that SHFE zinc inventories only increased by 942 tonnes in February, while SHFE zinc inventories soared by 50,760 tonnes in January.
The recovery of demand for refined zinc from end users in February contributed to the limited growth in SHFE zinc inventories, which in turn caused domestic apparent consumption of refined zinc to increase by 22,755 tonnes in February on a monthly basis.
China's apparent zinc consumption will likely rise to 5.4 million metric tonnes this year from 5 million tons last year as an economic stimulus measure boosts demand. Zinc has seen that market has moved 0.55% on Friday.