Lead in 57,000T Surplus in Year to August -- ILZSG

LONDON, Oct. 27 -- Lead was in a surplus of 57,000 mt in the first eight months of this year, according to the latest data from the International Lead and Zinc Study Group (ILZSG).

    Refined production of the heavy metal totaled 5.78 million mt, while consumption totaled 5.73 million mt.

    This compares with production of 5.69 million mt in the first eight months of 2008 and consumption of 5.72 million mt.

    Refined production rose on stronger Chinese output, while demand also rose on an increase in China of some 26.5%.

    Chinese imports of refined lead totaled 142,000 mt between January and August compared with net exports of 14,000 mt for the corresponding period a year earlier.

    Mine production totaled 2.53 million mt in the first eight months of 2009 compared with 2.58 million mt for the corresponding period a year earlier.

    "Reductions in lead mine production in Canada, Peru and Australia were partially offset by rises in Bolivia, China, Mexico and the Russian Federation," ILZSG said.

    Metal production amounted to 776,500 mt in August, while consumption came to 763,700 mt.

    Over the period, stock levels rose by 61,000 mt.

    Three-month lead rose to USD 2,393/94/mt in the official session on the London Metal Exchange on Monday. Prices rose as high as USD 2,434/mt after opening at USD 2,399/mt.

    Stocks fell by a net 150 mt in bonded warehouses, taking total inventories to 130,250 mt.

    (Source: Metal Bulletin)