Global Zinc, Lead Markets to Be in Deficit Again in 2014 By Laura Clarke
Demand is expected to continue to outstrip supply in the global markets for zinc and lead in 2014, the International Lead and Zinc Study Group said Thursday.
The group, which met in Lisbon, Portugal this week, said the world market for refined lead metal will remain in modest deficit with the extent of the shortage estimated at 49,000 metric tons.
It added that global demand for refined zinc metal will likely exceed supply in 2014 by 117,000 tons.
The ILZSG expects that global demand for refined lead metal will increase by 4.4% in 2014 to 11.73 million tons. "This will be driven mainly by growth in China where usage is forecast to increase by 7.4%," it said. In 2013, China accounted for 45.2% of total global lead usage.
Following a rise of 7.5% in 2013, global lead mine production is expected to increase by a further 5.2% to 5.66 million tons in 2014 primarily as a consequence of higher output in Australia and China. In 2014, world production of refined lead metal is forecast to rise by 4.3% to 11.68 million tons, according to the group.
"Output in the Republic of Korea, currently the world's third largest producer of lead metal behind China and the United States, is expected to rise by 5.7% to reach half a million tonnes," the group said.
It forecast that, after having risen by 4.9% in 2013, world usage of refined zinc metal will increase by a further 4.5% to 13.58 million tons this year.
Usage in China, which currently accounts for 44% of total world zinc demand, was forecast to rise by 5.8%. In Europe and the U.S., increases of 3% and 1.7% respectively were anticipated. Global zinc mine production was estimated to rise by 2.6% to 13.57 million tons in 2014.
"This is mainly a consequence of further growth in Chinese output and increases in Australia driven primarily by increases in production at Glencore Xstrata's Mount Isa and McArthur River operations and Perilya's Broken Hill mine," said the ILZSG. The group meets again in 2014.