Categories:
Base Metals
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General Market Commentary
Topics:
General Base Metals
/
General Market Commentary
Zinc, Lead Post Global Supply Deficits in 1H 2018
According to data released Monday by the International Lead and Zinc Study Group (ILZSG), both lead and zinc were in deficit through the first six months of the year.
According to the ILZSG report, Chinese data for the months of April, May and June are still unavailable; as such, revisions may be made as that data becomes available.
Global Lead Market
Global lead demand outpaced supply by 39 kt in the first half of the year, according to the report. Meanwhile, reported lead stock levels fell by 41 kt.
Global lead mine production fell 4.2% from the first half of 2017, down to 2,258 kt from 2,386 kt, which was “primarily due to lower output in Australia, Kazakhstan, Peru and the United States that more than offset increases in Europe, Cuba and Morocco,” according to ILZSG. Mine production in June hit 358.3 kt, down 3.4% from 371.0 kt in May.
Lead usage ticked up just 0.5% for the six-month period, aided by usage increases in the U.S. and Germany, according to the report.
Global Zinc Market
As for zinc, the global refined zinc market finished the first half with a 17-kt deficit, according to ILZSG. In that span, reported inventories increased by 77 kt.