Global lead and zinc markets in surplus during Jan-Apr'23 - ILZSG data

The International Lead and Zinc Study Group (ILZSG) has provided preliminary data on the global supply and demand of lead and zinc during the first four months of 2023.

World refined lead supply

According to data, there was a surplus of 46,000 tonnes (t) in world refined lead metal demand compared to supply during this period, leading to a decrease of 8,000 t in reported stock levels.

Global lead mine production increased by 2.2% during January-April 2023 to 1.39 million tonnes (mnt) from 1.36 mnt in the corresponding period last year (CPLY). This was primarily due to higher production in Kazakhstan, South Africa, and Turkiye, although this was partially offset by a reduction in the US.

Meanwhile, global lead metal production rose by 2% to 4.09 mnt during the first four months of 2023 from 4.01 mnt in CPLY, driven by increased output in China, India, and the Republic of Korea. However, there were significant declines in lead production in Bulgaria and Italy.

Refined lead metal usage experienced modest growth of 0.2% to 4.14 mnt during January-April, with increased consumption in China, India, Mexico, and the United Kingdom, offset by decreases in the Czech Republic, Germany, Italy, and Turkiye.

Chinese imports of lead contained in lead concentrates witnessed a significant rise of 44% to 217,000 t, while net exports of refined lead metal totalled 50,000 t, an increase of 17.9% compared to the same period in 2022.

Refined zinc supply and usage

For refined zinc metal, the ILZSG reported a surplus of 138,000 t in the global market during the first four months of 2023, accompanied by an increase of 58,000 t in reported inventories.

World zinc mine production marginally rose by 0.5% to 4.02 mnt during January-April from 4 mnt in CPLY, driven by increases in Brazil, China, India, Kazakhstan, and Turkiye, which were partly offset by reductions in Burkina Faso, Canada, and Peru. In Europe, there were rises in Ireland and Portugal, but decreases in Spain and Sweden, resulting in an overall increase of 1.9% in European output.

Chinese refined metal production experienced a significant increase, contributing to a global rise of 1.1% to 4.55 mnt. However, there were production declines in Europe, Canada, and Japan.

Refined zinc metal usage saw a global rise of 1.8% to 4.42 mnt during the first four months of 2023 from 4.34 mnt in CPLY, primarily due to increased consumption in China, India, and the US, despite reductions in Europe, Brazil, the Republic of Korea, Taiwan (China), Thailand, and Turkiye.

Chinese imports of zinc contained in zinc concentrates grew by 20.8% to 737,000 t, and net imports of refined zinc metal totalled 32,000 t, representing a 24.9% increase compared to the first four months of 2022.