The International Lead and Zinc Study Group said the global market for refined zinc metal was in deficit by 6000 tonnes, with total reported inventories declining by 18,000t over the same period.

Mine production jumped by 11.3% over the same quarter of last year, while refined production was up by 2.7%.

Global usage rose by 2.9%, mainly due to a strong rise in US important which resulted in an increase in US apparent demand of 49.4%.

Chinese imports of zinc concentrates were up by 10.8% to 297,000 tonnes, but net imports of refined metal dropped by 69.3% to 54,000t.

Bloomberg reported this week that China imported the most zinc in a year in April, up 21% over the same time last year, and zinc stockpiles had halved to the lowest levels since January 2015.

Cash zinc on the London Metal Exchange has risen by around 4.2% this week.

Although well off its February peak of US$2935 per tonne, the zinc price is about 4.8% higher so far this year, closing at $2624.50/t overnight.

Earlier this month, Macquarie said even zero global demand growth this year would result in a zinc deficit.

Macquarie said it was seeing “phase two” of the zinc rally in progress.

The bank expects to see zinc average $3100/t in the December quarter and average $2920/t this year.

Macquarie expects zinc to average $3100/t next year.