ILZSG reports global surpluses in refined zinc, lead in 10MCY'24

• Refined zinc output falls 2% globally
  
  
• Lead mine production inches up 1.5%
  
  

The International Lead and Zinc Study Group (ILZSG) unveiled preliminary figures on global lead and zinc supply and demand for the first 10 months (January-October) of 2024.

Refined zinc supply, usage

Similarly, ILZSG shared early data showing a zinc surplus in 10MCY'24. Global stockpiles grew by 80,000 tonnes (t) while refined zinc supply exceeded demand by 19,000 t.

• Mine production dipped 3.8% because of reduced output in Canada, China, South Africa, and Peru, with the Antamina mine in Peru experiencing a significant decline in over ten months of CY'24. Additionally, production in Europe was also lower, primarily as a result of reductions in Ireland and Portugal.
  
  
• Global refined zinc production fell 1.7% due to lower output in Mexico, the Netherlands, Norway, and Peru, but was offset by increases in Canada, China, France, Japan, and Germany.
  
  
• Globally, zinc usage rose 1.3%, with major consumers like China, Brazil, Republic of Korea, Taiwan, Thailand, Vietnam and India leading the increase. This growth was partially countered by reduced usage in the US and some European nations.
  
  
• China, a major zinc consumer, reduced their imports of raw zinc concentrate by 19.6%, bringing the total down to 1,523,000 t. Interestingly, their net imports of refined zinc metal actually increased by 65,000t reaching 366,000 t compared to the same period last year.
  
  

Refined lead supply, usage

ILZSG reported global supply of world refined lead metal in H1CY'24. The global supply exceeded demand by 21,000 t, leading to total reported inventories rising by 60,000 t in the first ten months of 2024.

• Global lead mine production inched up by 1.5% due to increases in Australia, Kazakhstan, Peru, and Sweden, which were partially offset by decreases in Ireland, Portugal, and the US.
  
  
• Global refined lead production fell by 1.7%, primarily due to decreased output in China and Canada, where scheduled maintenance at Teck Resources Trail operations in the second quarter (Q2) impacted production.

  Conversely, production rose in Australia, India, Japan, and the Republic of Korea compared to the first ten months of 2023. In Europe, production was stable overall, as increases in Bulgaria and Italy were offset by declines in Germany, Poland, and Sweden.
  
  

• Despite increases in refined lead metal consumption in China, India, Japan, and the Republic of Korea, the overall global usage decreased by 1.6%. This decline was driven by larger reductions in consumption across Europe and the US, which outweighed the gains in other regions.
  
  
• Additionally, China's imports of lead concentrate rose by 7.5% to 590,000 t, and net imports of refined lead metal totalled 118,000 t, compared to net exports of 153,000 t in the first ten months of 2023.