ILZSG releases Demand and Supply Statistics for Zinc, Lead for H1 2016

SEATTLE (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 138,000 tonnes during the initial six-month period of the current year. The total reported zinc inventories increased by 11,000 tonnes during this period.

The zinc mine output declined considerably in major producing countries including Australia, India, Ireland and Peru. Overall, the zinc mine output declined by 6.7% during the initial six-month period in 2016 when compared with the corresponding period last year. The Chinese refined zinc output increased during this period.

The refined zinc metal production during the six-month period totaled 6.648 million tonnes, 4.21% lower when compared with the 6.940 million tonnes output during corresponding six-month period in 2015. The refined zinc metal production surged higher in the Republic of Korea. On the other hand, production recorded decline in major producing countries including Argentina, Australia, Thailand and the United States. The sharp fall in refined zinc metal production in India was the primary reason for the decline in global output.

The global demand for refined zinc metal has increased marginally by 0.6% to 6.786 million tonnes during January to June this year, as compared with 6.746 million tonnes during the same period last year. The Chinese apparent usage increased by 7.1% during this period. The European region too reported demand rise of 3.6% during this period. However, the rise in usage was offset mainly by sharp 24.3% decrease in usage by the US. The refined zinc metal usage posted decline in Japan, Korea, Taiwan and Thailand.

Interestingly, Chinese net imports of zinc contained in concentrates plunged 32% during Jan-June ’16 in comparison with the corresponding period in 2015. The Chinese net imports of refined zinc metal totaled 281,000 tonnes. The net imports of refined zinc metal skyrocketed by 123%.

The ILZSG preliminary data indicates that global zinc mine output totaled 1.129 million tonnes during the month of June alone. The global refined zinc metal production totaled 1.134 million tonnes, whereas global zinc demand totaled 1.152 million tonnes during the month.

Lead

The ILZSG preliminary data indicates that global refined lead market was in surplus of 37,000 tonnes during the first half of 2016. The total reported lead inventories increased by 37,000 tonnes during the same period.

The lead mine production reported decline in countries such as Australia, India, China and the United States. The overall global lead mine production dropped by nearly 6.8% during Jan-June ’16 when compared with the corresponding six-month period in 2015. The world lead mine output during the six-month period this year totaled 2.218 million tonnes as against 2.381 million tonnes during the same period in 2015.

The refined lead metal production during the initial six-month period of 2016 totaled 5.161 million tonnes, marginally lower by 2.44% when compared with the 5.290 million tonnes output during corresponding six-month period in 2015. The refined lead metal production declined sharply by 10.7% in China. On the other hand, Kazakhstan and the Republic of Korea recorded increased lead metal output.

The global demand for refined lead metal witnessed marginal dip of 3.4% to 5.124 million tonnes during January to June this year. The European apparent usage increased sharply by 10.6%. Chinese apparent usage dropped by 12.8%. The usage in the US too has declined by nearly 2% over the year.

The ILZSG preliminary data indicates that global lead mine output totaled 384,400 tonnes during the month of June alone. The global refined lead metal production totaled 894,100 tonnes, whereas global lead demand totaled 897,700 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.