Theme of the Day: Zinc in 47kt surplus and lead in 21kt surplus in H125 - ILZSG

According to preliminary data recently compiled by the ILZSG, the global market for refined zinc metal was in surplus by 47kt over H125, with total reported inventories decreasing by 109kt.Despite reductions in Brazil and the US, world zinc mine production rose by 6.3%, influenced by increases in Australia, China, Mexico, Peru, South Africa, and the DRC, where the new Kipushi mine was commissioned in Jun 2024. Output in Europe also rose, benefiting from higher production at the Vares operation in Bosnia and Herzegovina, the commissioning of the Ozernoye mine in Russia in Sep 2024 and the resumption of operations at the Tara mine in Ireland in Oct 2024.Refined metal production fell by 2.1%. This was mainly the result of declines in Brazil, Kazakhstan, and Japan, due to the closure of Toho Zinc’s Anakka operation. Production also fell in Korea, mainly as a result of a temporary suspension of operations at the Seokpo smelter. These reductions were partially balanced by rises in Peru and Europe, where Boliden recently completed an expansion at its Odda Smelter.Increases in the usage of refined zinc metal in China, India, and Europe were partially offset by reductions in Brazil and the US, resulting in an overall global rise of 0.9%.Chinese imports of zinc contained in zinc concentrates fell by 48.3% to 1215kt. Net imports of refined zinc metal totalled 180kt, a decrease of 36kt compared to H124.Provisional data reported to the ILZSG indicate that world refined lead metal supply exceeded demand by 21kt during H125 with total reported inventories increasing by 26kt.Global lead mine production rose by 0.9%. This was primarily a consequence of increases in Bosnia and Herzegovina, China, India, and Peru, that were partially balanced by reductions in Brazil, Kazakhstan, and the US.A 1.6% rise in global lead metal production was mainly a result of higher output in Canada, China, India, Mexico, and Sweden. However, these increases were partially offset by reductions in Japan, Kazakhstan, and the UK.Refined lead metal usage grew by 2.3%, mainly a result of rises in the Philippines, Taiwan, the US, and Vietnam. Demand in Europe also rose, influenced by increases in the Czech Republic, France and Germany that were partially offset by a decline in Italy. In India, and Japan, however, usage was lower than during the same period of 2024.Chinese imports of lead contained in lead concentrates grew by 34% to 381kt. Net imports of refined lead metal totalled 9kt, compared to net exports of 14kt in H124.