World lead, zinc seen in surplus till next year Higher global usage of refined lead metal likely

Print this page Posted on : 10-20-2009 by recycleinme.com

Refined zinc metal usage worldwide is expected to decrease 5.6 per cent to 10.76 mt in 2009, the largest reduction since 1975.

Our Bureau

Mumbai, Oct. 19

Recognising that economic crisis has created an increased degree of uncertainty in the global lead and zinc markets and that unforeseen future developments regarding both supply and demand could significantly alter the forward looking market balances, the world market for refined lead and refined zinc will be in surplus this year and in 2010, the International Lead and Zinc Study Group (ILZSG) has said.

While the world surplus in refined lead will be an estimated 80,000 tonnes in 2009, it could exceed one lakh tonnes in 2010, the group said in a release.

Refined zinc

As for refined zinc, it anticipated that world supply will exceed demand by 3.8 lakh tonnes in 2009 and 2.27 lakh tonnes in 2010.

Interestingly, while refined zinc metal usage worldwide is expected to decrease 5.6 per cent to 10.76 million tonnes in 2009, the largest reduction since 1975, the only countries in which increases are anticipated are China (16.8 per cent) and India (6.2 per cent), ILZSG pointed out adding that in 2010, India will show a growth of 10.6 per cent and China 7.6 per cent.

Consumption

Global usage of refined lead metal is forecast to increase by 3 per cent to 8.91 mt in 2009 and by 7.2 per cent to 9.55 mt in 2010.

While demand will witness a decline in 2009 in both Europe and the US, it is expected to increase in both the regions next year.

China's apparent demand is forecast to rise by a quarter this year because of rising vehicle sales and production. In 2010, usage is predicted to rise further as a result of which China will account for about 45 per cent of total world lead demand.

On the supply side, global lead mine production will increase by 1.3 per cent to 3.94 mt this year. In 2010, output is forecast to increase by 5.8 per cent to 4.17 mt following further expansion expected in China's output. Global refined lead metal production is forecast to increase by 3.4 per cent to 8.99 mt in 2009 with a 20 per cent increase in China. In 2010, new plants to be commissioned in Brazil and India and higher production elsewhere will increase output by 7.4 per cent.

Source : Business Line