Markets Zinc prices on the LME averaged US$0.88 per pound for the year, down US$0.11 per pound from the 2011 average. In 2012, global zinc metal consumption was 12.8 million tonnes, which was an increase of 0.5% over 2011 levels. Metal  premiums increased in North America, while premiums in Asia and in Europe remained stable. Metal supply grew at a  greater rate than demand in 2012, leading to a surplus metal market in 2012 of approximately 200,000 tonnes. LME  stocks increased by 399,000 tonnes, or 49%, over 2011 levels and finished the year at 1,220,750 tonnes. We estimate  that total reported global stocks (which include producer, consumer, merchant and terminal stocks) increased by  279,000 tonnes in 2012 and at year-end represented an estimated 58 days of global consumption compared to the  25-year average of an estimated 40 days. In 2012, global mine production grew by 2%, or 230,000 tonnes of contained zinc, while global refined production  fell by 100,000 tonnes or 1.0%. This was a result of China increasing mine production by 14% and dropping refined  production by 8%. As a result of this, the global concentrate market recorded a modest surplus in 2012, representing  less than 1% of global mine production. In 2013, we believe that the global zinc concentrate market will record a further modest surplus representing less than  2% of global mine production. We further believe that global refined production will grow at a greater rate than refined  demand, leading to a global zinc metal surplus. Teck 2012 Annual Report 48 2012 2011 2010 2009 2008 0 Days 15 30 45 60 75 0 Tonnes 500 1,000 1,500 2,500 2,000 ■ Tonnes (000’s) ■ Days of global consumption ■ 25-year average days inventory 0 Tonnes 3 6 9 12 15 2012 2008 2004 2000 1996 1992 1988 ■  China ■ Rest of the world $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 0 Tonnes 300 600 900 1,200 1,500 ■  US$/pound ■ Tonnes (000’s) 2012 2011 2010 2009 2008 Zinc Inventories  Source: ILZSG, LME, SHFE Global Demand for Zinc  (Tonnes in millions) Source : ILZSG, Wood Mackenzie Zinc Price and LME Inventory  Source: LME