The International Lead and Zinc Study Group (ILZSG) released its latest report on lead and zinc today, showing supply deficits for both through the first five months of the year.
Zinc Market at 123 KT Deficit
The zinc market was in deficit by 123,000 tons over the first five months of the year, according to the ILZSG.
January-May zinc mine production hit 5.27 million tons, up 1.4% from 5.20 million tons during the equivalent five-month period in 2018. According to the report, the increase was paced by a “substantial” increase in Australian zinc mine production, in addition to increases seen in Namibia, South Africa and Sweden.
Meanwhile, zinc mine output fell in China, India, Peru, Turkey and the United States.
Mine production in May hit 1.12 million tons, down from 1.13 million tons the previous month.
Refined zinc metal production reached 5.39 million tons, down from 5.45 million tons the previous year. May production reached 1.12 million tons, up from 1.11 million tons in April. Refined production increases in Mexico and Peru were canceled out by declines in Canada, China, India and Russia.
Zinc usage fell 0.6%, paced by declines in China and the E.U. Usage increased, however, in Brazil, India, the Republic of Korea, South Africa and the United States.
Lead Deficit Hits 42 KT
Meanwhile, the lead market deficit for the first five months of the year reached 42,000 tons.
Lead mine production for the first five months of the year reached 1.94 million tons, up from 1.91 million tons for the same period in 2018. Canada, India, Mexico, Peru and Sweden saw increases, while production in Australia and China fell.
Lead metal production increased 2.6%, up to 4.83 million tons, up from 4.71 million tons.
Lead usage surged 2.8% during the five-month period to 4.88 million tons, powered by increases in China, India and Taiwan.