ILZSG releases latest Supply and Demand Statistics for Lead, Zinc

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 277,000 tons during the initial ten-month period of the current year. The total reported zinc inventories declined by 53,000 tons 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 1.8% during the initial ten-month period in 2016 when compared with the corresponding period last year.

The refined zinc metal production during the ten-month period totaled 11.322 million tons, marginally lower by 0.6% when compared with the 11.385 million tons output during corresponding ten-month period in 2015. The refined zinc metal production recorded major decline in key producing countries including Australia, India, Mexico and the United States. On the other hand, refined zinc metal output recorded marginal increase in China and the Republic of Korea.

The global demand for refined zinc metal increased modestly to 11.599 million tons during January to October this year, as compared with 11.184 million tons during the same period last year. The Chinese apparent usage increased sharply by 9.3% during this period. The European region too reported marginal demand rise of nearly 0.9% during this period. However, the rise in usage was offset by 14% reduction in usage by the United States.

Interestingly, Chinese net imports of zinc contained in concentrates plunged 44.5% during Jan-Oct ’16 in comparison with the corresponding period in 2015. The Chinese net imports of refined zinc metal totaled 359,000 tons. The net imports surged higher by 26%.

The ILZSG preliminary data indicates that global zinc mine output totaled 1.176 million tons during the month of October alone. The global refined zinc metal production totaled 1.187 million tonnes, whereas global zinc demand totaled 1.204 million tons during the month.

Lead

The ILZSG preliminary data indicates that global refined lead market was in surplus of 35,000 tons during the initial ten months of 2016. The total reported lead inventories increased by 38,000 tons during the same period.

The lead mine production reported decline in countries such as Australia, India and China. The overall global lead mine production dropped by nearly 7.8% during Jan-Oct ’16 when compared with the corresponding ten-month period in 2015. The world lead mine output during the ten-month period this year totaled 3.713 million tons as against 4.027 million tons during the same period in 2015.

The refined lead metal production during the ten-month period totaled 8.893 million tons, marginally lower by 1.1% when compared with the 8.995 million tons output during corresponding ten-month period in 2015. The refined lead metal production declined sharply in China. On the other hand, Australia, the United States, Kazakhstan and the Republic of Korea recorded increased lead metal output.

The global demand for refined lead metal witnessed decline of 2.03% to 8.858 million tons during January to October this year. The demand had totaled 9.042 million tons during the corresponding ten months in 2015. The European apparent usage increased sharply by 9.8%, mainly on the back of increased usage by Germany, Italy, Poland and the United Kingdom. Chinese apparent usage dropped by 9.8%. The refined metal demand remained flat in the US.

The ILZSG preliminary data indicates that global lead mine output totaled 401,500 tons during the month of October alone. The global refined zinc metal production totaled 922,700 tons, whereas global zinc usage totaled 912,100 tons 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.