By Carolina Curiel (ScrapMonster Author)
April 29, 2016 01:13:02 AM
BRUSSELS (Scrap Monster): The Standings Committee of International Lead and Zinc Study Group (ILZSG) in its Spring Meeting held on 27th April in Lisbon, Portugal reviewed the current trends and issues faced by the global lead industry. The meeting also published the supply and demand forecasts for the metal in 2016.
According to ILZSG forecasts, global demand for refined lead metal will see a rise of 2.0% to 10.83 million tonnes in 2016. 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. However, the rise in usage will be partially offset by the slowdown in sales growth of e-bike market.
The refined lead demand in the European region is likely to grow by 3.5% in 2016. ILZSG predicts increasing demand from Czech Republic, Italy, Spain and the UK. The US will witness a marginal recovery in demand of 1.0% after falling by 5.2% in 2015. The group forecasts growth in demand in other countries including India, Indonesia, Japan, Thailand and Turkey.
The global lead mine production is predicted to increase slightly by 0.5% to 4.58 million tonnes this year. The Chinese lead mine output is predicted to rise sharply by 9.7%. On the other hand, production cuts at various operations in Australia and closure of MMG’s Century Mine in August last year will result in 6.1% fall in mine output by ex-China region.
Also, global refined lead metal production will rise by 2.3% to 10.90 million tonnes in 2016, mainly on the back of increased output by China. The increased refined metal output in also on account of commissioning of the new 130,000 tonne per year capacity lead plant by Korea Zinc in the Republic of Korea.
ILZSG forecasts refined lead metal surplus of 76,000 tonnes during 2016.