Refined lead metal supply exceeded demand in Q1/16, refined zinc metal market in surplus

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Zinkerz (Foto: Initiative Zink)

Lisbon, Portugal — Provisional data reported to the International Lead and Zinc Study Group (ILZSG) indicate that world refined lead metal supply exceeded demand by 29kt during the first quarter of 2016. Over the same period total reported stock levels declined by 22kt. At the same time, the global market for refined zinc metal was in surplus by 42kt with total reported inventories rising by 56kt over the same period.

Regarding world lead supply and demand, the ‘Lead and Zinc Statistics’ Bulletin“ says:

  • Ex-China lead mine output fell by 5 percent due mainly to reductions in Australia, Ireland, India and the United States that were partially balanced by rises in Bolivia and Mexico. Chinese production is estimated to have fallen by 14.2 percent and global output by 9.1 percent.
  • On an ex-China basis output of refined lead metal increased by 4.3 percent. This was primarily a consequence of higher output in the Republic of Korea and the United States. According to Antaike, Chinese production amounted to 930kt, a reduction of 11.2 percent compared to the same period in 2015.
  • A fall in global refined lead metal usage of 2.6 percent was principally influenced by a fall in Chinese apparent demand of 13.3 percent. A 4.9 percent rise in Ex-China usage was driven mainly by increases in Europe, Indonesia, Mexico and Thailand.

Regarding world zinc supply and demand, the Bulletin runs:

  • A sharp 13.8 percent fall in ex-China zinc mine production was primarily due to lower output in Australia, India, Ireland, and Peru. It is estimated that Chinese production fell by 1.7 percent and global output by 9.5 percent.
  • Reductions in production in France, India, Japan and the United States were the main influenced on a fall in ex-China output of refined zinc metal of 5.6 percent. It is estimated that Chinese production fell by 3.5 percent and global output by 4.7 percent.
  • Despite an increase in Chinese apparent usage of refined zinc metal of 4.5 percent, global demand fell by 1.8 percent. This was mainly a consequence of reductions in Japan, Taiwan (China), Thailand and the United States.

Full details on the May 2016 edition of the Group’s 77 page ‘Lead and Zinc Statistics’ Bulletin and further details about the International Lead and Zinc Study Group (ILZSG) together with a full list of publications are available on the Group’s website at ilzsg.org.

Source: International Lead and Zinc Study Group (ILZSG)