In 2012 global finished zinc demand declined by 3% and global supply similarly fell by 3.1%. The drop in demand was mostly from the Eurozone and China, where demand declined by 8.9% and 3.2%, respectively. Meanwhile, refined supply in 2012 was largely impacted by the 7.5% decline in production from Chinese smelters. Low zinc prices and treatment charges during the year caused many smelters worldwide to reduce production to stay afloat, while many were forced to operate at a loss. For example, the two largest zinc smelters in China, Huludao Zinc Industry and Zhuzhou Metals, both posted financial losses during the year.
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