Trade Group Publishes Supply-Demand Outlook for Global Lead, Zinc Markets

SEATTLE (Scrap Monster): The meeting of the International Lead and Zinc Study Group (ILZSG) held recently in Lisbon, Portugal has published the outlook for trends in supply and demand for Lead and Zinc during 2018.

According to ILZSG, the world demand for refined lead metal is projected to rise by 2.7% in 2018 to 11.90 million tonnes (Mt), mainly on the back of estimated apparent usage growth in China and the U.S. The Chinese apparent demand is projected to grow at 3.5%, whereas the U.S. demand is expected to report 3.1% growth. The lead metal usage in Europe is likely to report 2.1% growth. The usage is likely to remain stable in other consumer countries including Japan and Korea.

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The world lead mine production is likely to total 4.90 Mt, 4.2% higher when compared with the previous year. ILZSG predicts mine production growth in Australia, Cuba and China. The world refined lead metal output will surge by nearly 3.8% to total 11.88 Mt in 2018, mainly on the back of output rises in the US and China. Australia and Europe too are likely to report expanded production this year.

The group anticipates that global demand for refined lead metal will exceed supply by 17,000 tonnes in 2018.

Meantime, the global refined zinc metal demand is forecast to rise by 2.0% to total 13.97 Mt this year. The usage is expected to increase in the U.S., Europe, India and Korea. The Japanese usage is predicted to remain stable. The global zinc mine production is likely to grow by over 5% in 2018 to total 13.62 Mt. The global refined zinc metal production is expected to see growth of 3.6% over the previous year to 13.71 Mt. The U.S. output is expected to decline by 5.3% during this year.

ILZSG expects the global demand for refined zinc metal to exceed supply in 2018. The deficit for the full year 2018 is forecast at 263,000 tonnes. It must be noted that the world zinc market had ended at 495 kt deficit in 2017.