Global Refined Zinc and Lead Markets Report Deficits During Jan-Apr '17

SPOKANE (Scrap Monster): The latest statistics published by the International Lead and Zinc Study Group (ILZSG) indicates that global refined zinc market was in deficit of 112,000 tonnes during the initial four-month period of the current year. This is when compared with the corresponding period last year. The total reported zinc inventories have declined by 115,000 tonnes during this period.

Zinc

The zinc mine output rebounded strongly in major producing countries including China, Eritrea, India, Peru and Turkey. Overall, the zinc mine output increased by 7.3% during Jan-Apr ’17 when compared with the corresponding four-month period last year.

The refined zinc metal production during the initial four months of 2017 totaled 4.494 million tonnes, marginally higher by 1.6% when compared with the 4.423 million tonnes output during corresponding four-month period from January to April in 2016. The refined zinc metal production recorded modest increase in France, India and Kazakhstan. However, the gains were partially offset by decline in production in other countries like Canada, Peru and the Republic of Korea.

The global demand for refined zinc metal increased slightly to 4.606 million tonnes during January to April this year, as compared with 4.443 million tonnes during the same period last year. Europe’s apparent usage has declined slightly by 1.4% during this period. China too reported demand decline of nearly 0.7% during this period. However, the drop in usage was offset by strong apparent usage by the US. Incidentally, the US recorded 42.9% jump in apparent usage of refined zinc metal.

Interestingly, Chinese net imports of zinc contained in concentrates increased sharply by 17.7% during Jan-Apr ’17 in comparison with the corresponding period in 2016. The Chinese net imports of refined zinc metal totaled 385,000 tonnes. The net imports of refined zinc metal tumbled by 53.5% to 99,000 tonnes.

The ILZSG preliminary data indicates that global zinc mine output totaled 1.075 million tonnes during the month of April alone. The global refined zinc metal production totaled 1.114 million tonnes, whereas global zinc demand totaled 1.206 million tonnes during the month.

Lead

The ILZSG preliminary data indicates that global refined lead market was in deficit of 68,000 tonnes during the initial four months of 2017. The total reported lead inventories increased marginally by 2,000 tonnes during the same period.

The lead mine production reported increase in China. However, the increase in production was more than balanced by decline in mine output in Australia. The overall global lead mine production soared nearly 13% during Jan-Apr ’17 when compared with the corresponding four-month period in 2016. The world lead mine output during the four-month period this year totaled 1.709 million tonnes as against 1.512 million tonnes during the same period in 2016.

The refined lead metal production during the four-month period totaled 3.909 million tonnes, significantly higher by almost 8.4% when compared with the 3.606 million tonnes output during corresponding period in 2016. The refined lead metal production reported significant jump in China. Several other countries including India and the United States too recorded increased lead metal output.

The global demand for refined lead metal witnessed sharp rise of 11.15% to 3.977 million tonnes during January to April this year. The European apparent usage increased marginally by 1.5%. Chinese apparent usage surged higher by 16.4%. The refined metal demand in the United States was up by 22.8% during the first four months of 2017.

The ILZSG preliminary data indicates that global lead mine output totaled 433,500 tonnes during the month of April alone. The global refined zinc metal production totaled 962,200 tonnes, whereas global zinc usage totaled 968,400 tonnes during the month.

About ILZSG

ILZSG, formed in 1959 by the UN, is one of the longest established international commodity organizations. It provides opportunities for regular intergovernmental consultations on international trade in lead and zinc, continuous information on the supply and demand position of lead and zinc and its probable development and to make special studies of the world situation and consider possible solutions to any problems or difficulties which are unlikely to be resolved in the ordinary development of world trade.