The closure of the last zinc smelter in Europe has added to the conundrum of how to meet the rising global demand for zinc. The closure of the French smelter in Salindres in December 2019 has left Europe without an integrated zinc smelter and has put pressure on the global zinc market.
Zinc is an essential mineral used in a wide range of products, from construction materials to medical supplies. It is also used in galvanizing steel, which makes it an important material for the automotive and construction industries. Global demand for zinc has been steadily increasing in recent years, driven by strong economic growth in emerging markets such as China and India.
The closure of the Salindres smelter has exacerbated the supply-demand imbalance in the global zinc market. The smelter was the last integrated zinc smelter in Europe, meaning it produced zinc from ore. With the closure of the Salindres smelter, Europe is now completely dependent on imports for its zinc needs.
The closure of the Salindres smelter is part of a wider trend of declining zinc smelting capacity in Europe. The number of zinc smelters in Europe has declined from 11 in 2000 to just four in 2019. This is largely due to the increasing cost of production and environmental regulations, which have made it increasingly difficult for European smelters to remain competitive.
The closure of the Salindres smelter has also had an impact on the global zinc market. It is estimated that the closure of the smelter has reduced global zinc supply by around 8%. This has led to a tightening of the global zinc market, with prices rising to their highest levels in more than a decade.
The situation is further complicated by the fact that the majority of global zinc production is concentrated in just a few countries. China is the world’s largest producer of zinc, accounting for more than 40% of global production. India is the second largest producer, accounting for around 15%. The United States, Canada, and Australia are also major producers, but their combined share of global production is less than 10%.
The closure of the Salindres smelter has highlighted the need for increased investment in zinc production capacity in Europe. This could involve the construction of new smelters or the expansion of existing ones. It could also involve the development of new technologies to make zinc production more efficient and environmentally friendly.
In the short term, the closure of the Salindres smelter has led to a tightening of the global zinc market. This has resulted in higher prices and increased volatility. In the longer term, it is likely that the global zinc market will remain tight, as new production capacity takes time to develop. The closure of the Salindres smelter has also highlighted the importance of diversifying global zinc production. This could involve the development of new sources of zinc, such as recycling and secondary sources. It could also involve the development of new technologies to make zinc production more efficient and environmentally friendly.
The closure of the Salindres smelter has added to the conundrum of how to meet the rising global demand for zinc. In the short term, it has led to a tightening of the global zinc market and higher prices. In the longer term, it is likely that the global zinc market will remain tight, as new production capacity takes time to develop. It is also likely that the closure of the Salindres smelter will lead to increased investment in zinc production capacity in Europe and the development of new sources of zinc.
