Data for 1H20 Global Lead and Zinc Supply and Demand Out

The International Lead and Zinc Study Group (ILZSG) released preliminary data for world lead and zinc supply and demand during 1H20.

Provisional data reported to the ILZSG indicates that world refined lead metal supply exceeded demand by 78,000 tons during 1H20. Over the same period, total reported stock levels decreased by 20,000 tons. A fall of 5.5 percent in global lead mine production was primarily a consequence of reductions in Bolivia, Canada, India, Kazakhstan, Peru and South Africa. A 4.3 percent decrease in global lead metal production was mainly a result of lower output in China, India, the US and Europe, influenced by reductions in Belgium, Germany and Italy. Production also fell in Canada, primarily a consequence of the closure of Glencore’s 70,000-tons-per-year lead smelter in New Brunswick at the end of 2019, noted the ILZSG.

Refined lead metal usage fell in a number of countries including Brazil, China, India, Japan and the US, resulting in an overall decline globally of 5.9 percent. In Europe, usage was also significantly lower, mainly a consequence of reductions in Czech Republic, France, Italy, Poland, Russia, Spain and the UK. Chinese imports of lead contained in lead concentrates decreased by 24.5 percent to 318,000 tons, reported the ILZSG. Net imports of refined lead metal totaled 18,000 tons compared to 86,000 tons over the same period of 2019.

With respect to zinc, the global refined market had a surplus of 205,000 tons during 1H20. Total reported inventories increased by 148,000 tons, according to preliminary data recently compiled by the ILZSG. World zinc mine production fell by a substantial 7.5 percent, primarily influenced by reductions in Bolivia, China, Mexico, Namibia, Peru and the US. In Canada, output also declined, mainly as a result of the closure of Glencore’s Langlois mine in December 2019 and the suspension of operations at Coeur Mining’s Silvertip and Trevali’s Caribou mines in 1Q20, the ILZSG pointed out.

Higher refined zinc metal production in China was partially balanced by decreases in India, Japan, Mexico, Namibia and Peru, resulting in an overall rise globally of 0.7 percent. A reduction of 3.7 percent in global usage of refined zinc metal was mainly a consequence of reductions in Europe, India, the Republic of Korea, Japan and the US. Chinese imports of zinc contained in zinc concentrates rose by 44 percent to 968,000 tons. Net imports of refined zinc metal totaled 201,000 tons: a decrease of 38 percent compared to 1H20, the ILZSG highlighted.