Metals News
Deficit in supply and demand in lead, zinc and copper markets in the first quarter of 2019
Jul 18,2019
Source:Chihong zinc germanium
The content below was translated by Tencent automatically for reference.

SMM News: (ILZSG), the international lead and zinc research organization, said in a press release that preliminary data reported to the organization showed that global demand for refined lead exceeded supply by 39000 tons in the first four months of 2019, while inventories fell by 21000 tons over the same period.

Global mineral lead production rose 0.7 per cent, partly offset by lower mineral lead production in India, Peru and Sweden.

Global refined lead production rose 2.3 per cent, thanks mainly to increased refined lead production in China, India and South Korea, while production in Europe, Japan and the US remained stable.

Global refined lead consumption rose 2.3 per cent, driven by an increase in refined lead consumption in China and India. Refined lead consumption in Europe, Japan, South Korea and the United States fell compared with the same period in 2018.

The International lead and Zinc Research Organization also pointed out that between January and April 2019, the total global inventory of refined zinc increased by 10, 000 tons, with a market gap of 97000 tons.

Global mineral zinc production increased by 1.5 per cent. This was mainly due to a significant increase in Australian production, followed by production growth in Europe, Namibia and South Africa. Production in China, India, Mexico, Peru and the United States is lower.

The decline in refined zinc production in China, India and the Russian Federation offset increases in refined zinc production in Mexico and Peru, resulting in a 2.3 per cent decline in global refined zinc production.

Global consumption of refined zinc fell 1.3 per cent, mainly due to a significant reduction in Chinese demand. Consumption levels in Europe, India, Japan and the United States were the same as in the same period in 2018.

According to (ISCG), the international copper research group, preliminary data show that global mineral copper production fell by about 1.3 per cent in the first quarter of 2019, with copper concentrate production falling by about 1 per cent and electrowinning copper production by 3.5 per cent.

The International Copper Research Group noted that while production had increased in some countries, it had been largely offset by decreases in production in the two main producing countries, Chile and Indonesia.

Chile is the world's largest producer of copper, mainly because of its low grade of copper, which has fallen by 5 per cent. Concentrate production in Indonesia fell by 52 per cent, mainly due to a temporary reduction in output levels due to the transition period between the two main mines in the country.

Production in the Democratic Republic of the Congo and Zambia increased by 11 per cent in 2018 and only 1.7 per cent in the first quarter of 2019, offsetting increases in other mines.

The International Copper Research Group added that production in Peru, Australia, China and Mongolia had increased as a result of improved taste this year and the release of limited capacity in 2018.

"Mine production in Africa, North America and Oceania is estimated to have increased by about 2 per cent by region, but decreased by about 3 per cent in Asia, 3 per cent in Latin America and 3.5 per cent in Europe.

Preliminary data show that global refined copper production fell by about 1.1 per cent, of which electrolytic and electrodeposition copper production fell by about 1.5 per cent and recycled copper production increased by 0.7 per cent.

The decline in global refined copper production is mainly due to a 32 per cent decline in electrolytic refined copper production in Chile as a result of the temporary closure of smelters to comply with new environmental regulations; a 45 per cent decline in production in India as a result of the closure of the Tuticorin smelter in April 2018; and a 28 per cent decline in refining production in Zambia as a result of power outages, power outages at smelters and a 5 per cent tariff on copper concentrate imports from 1 January 2019.

However, as Chinese smelter capacity continued to expand, the overall decline was partly offset by an increase in refined copper production in China. Other countries that have recovered from production restrictions in 2018, such as Australia, Brazil and Poland, have also contributed to growth. "

Refined copper production in Asia and Oceania is estimated to have increased by 2.5 per cent, while Africa has fallen by 8 per cent, the Americas by 12 per cent and Europe has remained stable, according to the International Copper Research Group.

In the first quarter of 2019, global refined copper consumption grew by about 0.8 per cent, while China's estimated consumption increased by about 4 per cent. Demand for copper increased in India, but fell in the European Union and the United States, and flat in Japan.

In the first quarter of 2019, the global balance of refined copper supply and demand ran a deficit of 30,000 tons.

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