Ag zinc part of total demand increase
ZINC USE IN RUBBER
The global zinc industry, noted IHS, is rebounding and will continue to grow after being hard hit by the recent economic crisis due to its dependence on the automotive industry, which experienced a strong decline in volume. Zinc chemicals suffered the strongest in the area of rubber compounding for tires, which comprises about 20 percent of total consumption of zinc chemicals globally. Additionally, much of the rubber not consumed in the tire segment is used in other automotive applications.
However, according to IHS Automotive, automotive production numbers are expected to nearly double by 2030, as the standard of living increases in highly populated countries including China, India and Brazil. This increase in automotive volume will also drive more demand for zinc chemicals. Currently, the global rubber industry accounts for more than 54 percent of the zinc oxide market, or about 860 TMT. Of that, an estimated two-thirds of zinc oxide supply is used to produce tires, while all other rubber applications accounted for the remaining one-third. By 2018, IHS estimates the global tire and rubber industry will consume approximately 1 MMT of zinc oxide.
According to IHS estimates, the world demand for zinc oxide in 2013 was 1.6 MMT, with global demand growth forecast at nearly 4 percent annually during 2013 to 2018. China is expected to continue to be the largest consumer of zinc oxide (China currently consumes nearly 42 percent of global capacity) and to have the highest demand growth rate of approximately 6 percent per year. The U.S. and Western Europe follow China in terms of consumption, each with approximately 12 percent of global demand.
Other uses for zinc chemicals are the production of chemicals, ceramics, glass, and paints and coatings. The largest manufacturers of zinc chemicals, in terms of capacity, are Votorantim (Brazil), Zinc Nacional (Mexico), Umicore (Belgium), Grillo (Germany), and Weifang Longda Zinc Industry (China).
Said Schlag, “Global zinc chemical production will soon be reaching very high utilization rates, so new capacity is needed. At IHS Chemical, we expect new capacity for zinc chemicals to come online during the next five years, most likely in Asia and in China, in particular, to satisfy the increasing demand for tire production and rubber goods, in general.” The region is expected to consume an estimated 2 MMT of zinc oxide in 2018.
For more information on the IHS Chemical Economics Handbook: Inorganic Zinc Chemicals report, please contact firstname.lastname@example.org.
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