The International Lead and Zinc Study Group (ILZSG) released its monthly report for July, which found that global refined lead metal demand outgrew supply during the first five months of the year.
Furthermore, total reported stock levels increased over this time, as well.
Want a short- and medium-term buying outlook for aluminum, copper, tin, lead, zinc, nickel and several forms of steel? Subscribe to our monthly buying outlook reports!
The ILZSG report revealed an increase in global lead mine production of 12.7% when compared to the first five months of 2016. This was mostly attributed to increased output in China and India, which counterbalanced decreases in Peru and Australia.
According to the ILZSG: “A rise in world refined lead metal output of 7.2% was primarily influenced by increases in China, India, the Republic of Korea and the United States. An increase in US apparent demand for refined lead metal of 23.3% was principally a consequence of a sharp rise in net imports. Chinese apparent usage rose by 13.7% and in Europe by a more modest 1.7%. Overall global demand rose by 10.3%.”
The ILZSG report concluded that Chinese imports of lead contained in lead concentrates dropped 4.9%. Meanwhile, net imports of refined lead metal grew substantially, from 12kt in 2016 to 41kt this year.
Lead Price Outlook for 2017
How will lead and base metals fare in 2017? You can find a more in-depth lead price forecast and outlook in our brand-new Monthly Metal Buying Outlook report.
For a short- and long-term buying strategy with specific price thresholds: