By Paul Ploumis (ScrapMonster Author)
October 15, 2015 03:12:34 AM
BRUSSELS (Scrap Monster): The International Lead and Zinc Study Group (ILZSG) in its two-day session held on 8th and 9th of this month in Lisbon, Portugal examined the current trends and issues faced by the global lead industry. The meeting also published the supply and demand forecasts for the metal in 2015 and 2016.
According to ILZSG forecasts, global demand for refined lead metal will see a decline of 0.7% to 10.82 million tonnes in 2015. On the other hand, ILZSG predicts a demand growth of 2.6% to 11.11 million tonnes in 2016. The slowdown in e-bike production in China will lead to 0.6% decline in refined lead metal usage by that country in 2015. The Chinese usage is expected to rise by 2.6% in 2016 in the wake of increased usage by the automotive and industrial battery sectors.
The refined lead demand in the European region is likely to fall marginally by 0.8% in 2015. The US will witness 3.6% fall in demand during the year. However, European and the US demand is expected to rise by 3.1% and 1.9% respectively in 2016. ILZSG predicts lead demand to remain higher in India, South Korea and Turkey.
The global lead mine production is predicted to fall further by 2.5% to 4.80 million tonnes this year. The production cuts at various operations in Australia are being cited as the key reason for the decline in output this year. The increased output from China, Mexico and the Russian Federation will offset losses from Australia and Ireland in 2016. The worldwide lead mine production is expected to grow by 1.2% during next year to 4.86 million tonnes.
Also, global refined lead metal production will drop marginally by 1% to 10.83 million tonnes in 2015. The production will rise further by 3.5% to 11.20 million tonnes during the next year.
ILZSG forecasts close balance in global lead market in 2015, followed by a supply surplus of 97,000 tonnes in 2016.
