Refined zinc metal demand increased modestly during Jan-Nov ‘16

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 263,000 tons during the initial eleven-month period of 2016. The total reported zinc inventories declined by 72,000 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 1.2% during the initial eleven-month period in 2016 when compared with the corresponding period last year. This is despite sharp increase in mine output by China.

The refined zinc metal production during the eleven-month period totaled 12.532 million tons, more or less flat when compared with the 12.534 million tons output during corresponding eleven-month period in 2015. The refined zinc metal production recorded major decline in key producing countries including Australia, India, Japan, 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 12.795 million tons during January to November last year, as compared with 12.358 million tons during the same period last year. The Chinese apparent usage increased sharply by 8.8% during this period. The European demand remained flat during this period. However, the rise in usage by China was offset by 12.7% reduction in usage by the United States.

Interestingly, Chinese net imports of zinc contained in concentrates plunged 42.3% during Jan-Nov ’16 in comparison with the corresponding period in 2015. The Chinese net imports of refined zinc metal totaled 736,000 tons. The net imports of refined zinc metal surged higher by 7.9% to 382,000 tons.

The ILZSG preliminary data indicates that global zinc mine output totaled 1.137 million tons during the month of November alone. The global refined zinc metal production totaled 1.199 million tonnes, whereas global zinc demand totaled 1.226 million tons during the month.

Lead

The ILZSG preliminary data indicates that global refined lead market was in surplus of 16,000 tons during the initial eleven months of 2016. The total reported lead inventories increased by 18,000 tons 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 7.5% during Jan-Nov ’16 when compared with the corresponding eleven-month period in 2015. The world lead mine output during the eleven-month period last year totaled 4.061 million tons as against 4.389 million tons during the same period in 2015.

The refined lead metal production during the eleven-month period totaled 9.812 million tons, marginally lower by 1.2% when compared with the 9.932 million tons output during corresponding eleven-month period in 2015. The refined lead metal production declined sharply in China. On the other hand, Australia, Kazakhstan and the Republic of Korea recorded increased lead metal output.

The global demand for refined lead metal witnessed decline of 1.7% to 9.796 million tons during January to November this year. The demand had totaled 9.969 million tons during the corresponding eleven months in 2015. The European apparent usage increased sharply by 9.5%. Chinese apparent usage dropped by 9.1%.

The ILZSG preliminary data indicates that global lead mine output totaled 347,700 tons during the month of November alone. The global refined zinc metal production totaled 897,900 tons, whereas global zinc usage totaled 914,500 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.