Despite the fact that the share of the Russian market in the world production of zinc concentrate and metallurgical zinc is relatively high, the near future could see some major changes.
Russia currently has 17% of world's zinc reserves (32-46 million tonnes) and 2 of the largest zinc deposits in the world: Ozernoe (8 million tonnes) and Holodninskoe (14 million tonnes in the Republic of Buryatia.
Leading companies are planning to increase extraction of zinc concentrate as well as the construction of new zinc production factories (not to mention the productivity of existing capacity).
Zinc production in 2006, reconstruction and new plants by 2012
Company
Location
2006
Planned
Start
Produce
CZP
Chelyabinsk Zinc Plant
Chelyabinsk region
148000
2010
200000
UMMC
Electrozinc
Ossetia
88000
2010
110000
Kirovograd
-
2012
140000
RMK
-
2012
100000
Total:
550000
Based on the above, production forecast towards 2015 in Russia includes:
- zinc concentrate = 1,100,000 tonnes
- metallurgical zinc = 550,000 tonnes
The Russian market products containing zinc consumption is on the rise.
The annual growth of direct consumption of zinc is rising at 12-16% a year.
Regional Zinc Consumption vs. Gross Domestic Product (GDP)
In the countries of Eastern Europe consumption for galvanizing has doubled over the past decade.
In Russia, due to a sharp increase in the use of fast-build structures demand for galvanized sheet has doubled in less than five years.
On the whole, Russian market currently absorbs about three million tonness of galvanized sheet per year.
Moreover, consumption tends to increase by 20-30% with every coming year.
Russian galvanizing plants and development prospects.
With 50% increase in the number of galvanizing plants - up to 170,000 tonnes of zinc will be required annually.
Compared with 2006, the volume of construction will grow by more than 50% towards 2010, while car production in Russia will double by 2015, which will lead to growth in zinc mining and processing.
There is also a considerable growth potential in zinc consumption in areas such as production of alloys and use in the chemical industry.
