ILZSG: Refined lead supply exceeded demand, refined zinc market was in deficit

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Zinkerz (Foto: Initiative Zink)

Lisbon, Portugal — The International Lead and Zinc Study Group (ILZSG) has released world lead and zinc supply and demand data during the first five months of 2016. The figures indicate that world refined lead metal supply exceeded demand by 53kt during the first five months of 2016. Over the same period total reported stock levels increased by 30kt. The reported global market for refined zinc metal was in deficit by 64kt from January to May 2016 with total reported inventories falling by 24kt over the same period.

The key figures on lead metal indicate:

  • A decrease in global lead mine production of 5 percent compared to the same period in 2015 was mainly a consequence of reduced output in Australia and the United States.
  • Despite increases in the Republic of Korea and Kazakhstan world production of refined lead metal fell by 1.9 percent. This was mainly due to lower output in China.
  • A reduction in global usage of refined lead metal of 3.3 percent was primarily influenced by a decrease in Chinese apparent demand of 12.4 percent. Usage in Europe rose by 9.8 percent but fell by 1.2 percent in the United States and 7.5 percent in the Republic of Korea.
  • Chinese imports of lead contained in lead concentrates totalled 286kt, a reduction of 19.9 percent compared to the same period in 2015.

The key figures on zinc metal indicate:

  • A significant 7.7 percent reduction in global zinc mine production compared to the first five months of 2015 was principally due to decreases in output in Australia, India, Ireland, Peru and the United States.
  • World output of refined zinc metal declined by 3.6 percent with reductions in India, Japan and the United States being partially balanced by increases in the Republic of Korea and Namibia.
  • World demand for refined zinc metal increased by 0.6 percent. This was mainly a consequence of a rise in Chinese apparent usage of 8.2 percent that more than offset declines in Japan, the Republic of Korea, Taiwan (China) and the United States.
  • Chinese imports of zinc contained in zinc concentrates declined by 26 percent to 373kt whilst the country’s net imports of refined zinc metal increased by 112 percent to 250kt.

Full details are available in the July 2016 edition of the Group’s 77 page ‘Lead and Zinc Statistics’ Bulletin. 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.

Source: International Lead and Zinc Study Group (ILZSG)