The global market for refined zinc metal was in deficit by 485,000 mt over the first 11 months of 2017, with total reported inventories decreasing by 320,000 mt over the same period, according to provisional figures issued by the International Lead & Zinc Study Group on January 17.
This compares with a 206,000 mt deficit in January-November 2016.
World usage of refined zinc metal rose 1.9% year on year to 12.994 million mt in the first 11 months of 2017, mainly driven by an increase in apparent demand in China of 2.1%, the ILZSG said.
In Europe and the US, usage in the period remained similar to year-earlier levels, the group said.
Overall global output of refined zinc metal fell by a marginal 0.3% to 12.509 million mt, primarily due to lower production in Canada, China, the Republic of Korea, Peru and Thailand, and despite a sharp rise in India.
Higher zinc mine production in Canada, Eritrea, India, Namibia and Peru helped push global output 4.8% higher to 12.201 million mt, "more than offsetting reductions in Australia, Ireland and Sweden," the ILZSG said.
Imports into China of zinc contained in zinc concentrates rose 27% to 935,000 mt over the first 11 months of 2017, while Chinese net imports of refined zinc metal rose 47.1% to 562,000 mt, of which 123,000 mt was imported in November.
The global market for refined lead metal was in deficit by 169,000 mt over the first 11 months of 2017, with total reported inventories decreasing by 33,000 mt over the same period, the ILZSG said..
This compares with a marginal 15,000 mt surplus in January-November 2016.
Year-on-year growth of 4.9% in refined lead metal usage to 10.749 million mt was principally a result of rises in China, South Korea and the US, while apparent demand increased by 3.5% in Europe, influenced by increases in Germany and the UK, the ILZSG said.
A 3.1% increase in world refined lead metal output to 10.580 million mt "was mainly influenced by higher output in China and India that more than balanced a decrease of 8.6% in the United States," the group added.
Global lead mine production rose by 3.0% to 4.486 million mt over the first 11 months of 2017 compared with the same period in 2016.
This was mainly due to increases in China, India and Kazakhstan that more than offset a significant fall in Australia, and reductions in Sweden and the US, the ILZSG said.
China's imports of lead contained in lead concentrates fell 7.7% to 643,000 mt in January-November last year, while Chinese net imports of refined lead metal totaled 77,000 mt, compared with net exports of 11,000 mt during the first 11 months of 2016.
