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Zinc Market Overview: Zinc ore production in 2023 fell below expectations, but a significant increase is anticipated in 2024.

Import Dynamics: The zinc concentrate import window opening in Q2 2023 led to a surge in imported zinc cargoes, and it is predicted that imported zinc ores will remain high in 2024, putting pressure on the supply side.

Domestic Zinc Production: Despite a drop in zinc prices affecting domestic zinc concentrate production profitability, market predicts a year-on-year increase of 100,000 mt in zinc concentrate output for 2023.

Refined Zinc Output: Driven by high profits, smelters are operating at high rates, with an estimated refined zinc output of about 6.75 million mt in 2024.

Alloy Production Trends: The proportion of die-cast alloy production at smelters increased in 2023, and hot-dip alloy production has shown an upward trend since June, indicating a changing landscape in alloy production.

Secondary Zinc Industry: The secondary zinc industry faced losses initially due to declining zinc prices but recovered as zinc rebounded, leading to increased profits compared to previous levels.

Infrastructure Impact: The concentrated start of infrastructure projects in 2023 contributed to a stable operating rate for galvanized structural parts plants.

Export Dynamics: Higher exchange rates from July 2023 improved export orders for galvanized sheets, resulting in increased export volume.

Automobile and Home Appliance Sector: Sales data for automobiles and home appliances in 2023 exceeded expectations, indicating positive growth in these sectors.

Inventory Trends and Supply Outlook: Domestic visible inventory remained low, and LME zinc inventories started to decline. However, a reduction in the proportion of long-term orders may lead to increased pressure on the supply side in 2024, potentially causing a slight surplus in the zinc ingot market.

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