Global demand for lead and zinc expected to rise in 2023 - ILZDSG

The International Society for the Study of Lead and Zinc (ILZSG) has published its 2023 Global Supply and Demand Forecast for the two metals. Lead ingots were projected to have a supply shortfall of 20,000 tonnes (t) (compared to a supply shortage of 99,000 t in the previous year) while shortage of zinc ingots has been estimated at 45,000 t.

The zinc shortage is expected to shrink compared to the previous year due to the expected recovery of production in Europe which had witnessed significant reduction in production due to soaring energy prices in 2022.

Global supply and demand for lead ingots are expected to be 12.51 million tonnes (mnt) (up 2.8% year-on-year) and consumption is expected to be 12.53 mnt (up 1.7% year-on-year). Compared to last autumn's forecast, the supply volume has been revised downward by 50,000 t while consumption is forecast to edge down by 70,000 t.

Supply is expected to increase in Germany, Australia, India, Kazakhstan, South Korea, and Mexico. On the other hand, Bulgaria and Italy may witness significant decline. In Europe, demand from Italy is expected to decrease, but it is expected to increase by about 0.4% y-o-y. On the other hand, sales in China are expected to increase by 0.7% y-o-y, while India, Japan, South Korea, Mexico, and the United States are also expected see increase in sales y-o-y.

Global supply and demand for zinc ingots is expected to be 13.76 mnt (up 3.1% year-on-year) and consumption is expected to be 13.8 mnt (up 2.1% year-on-year). Compared to last autumn's forecast, supply has been revised downward by 80,000 t, and consumption by 190,000 t. The supply-demand balance is expected to shrink from the 150,000 t supply shortage predicted last fall.

In terms of supply, production in China is expected to increase significantly by 4% y-o-y, while Australia, Canada, India, Kazakhstan and Mexico are also expected to increase production y-o-y. In Europe, where production was drastically reduced due to soaring electricity bills last year, production is expected to increase by 2.3% in 2023. On the other hand, production in Japan and South Korea is expected to decline.

In terms of demand, consumption in China is expected to recover moderately by 2.1% y-o-y, while India, South Korea, Turkey, and the United States are likely to witness rise in demand. On the other hand, demand in Europe is forecast to decline by 0.5%.

On the other hand, zinc mine production is expected to increase by 3% to 12.86 mnt. Australia, India, Brazil, Kazakhstan and Mexico are expected to increase production.

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.