Nonferrous metals have gone from deficit to surplus in a year
By Tom Stundza -- Purchasing, 2/12/2009 7:00:00 AM
The world refined zinc market showed a 134,000 metric tons surplus at the end of November 2008, compared with an 11,000 metric ton deficit in the same 11-month period of 2007, according to statistics from the International Lead & Zinc Study Group.
The world refined lead market showed 8,000 metric tons of excess supply in January-November 2008, compared with 72,000 metric tons of deficit in the same 2007 period.
Global production of refined zinc metal rose by 3.8% to 10.76 million metric tons in the 11-month period from 10.36 million in January-November 2007, although there was a sharp 6.4% decline in output in November. Meanwhile, despite decreased usage in Europe, Japan and the U.S., world demand for refined zinc metal increased by 2.4% to 10.62 million metric tons from 10.37 million in 2007, mainly as consequence of further growth in Chinese usage.
The Lisbon, Portugal-based ILZSG reports that global production of refined lead metal rose by 7.6% to 7.96 million metric tons in the 11-month period from 7.39 million metric tons in January-November 2007, due to increased output in such countries as Australia, Canada, China, India, the Republic of Korea and the United Kingdom. World demand for refined lead metal increased by 6.4% to 7.95 million metric tons from 7.47 million as increases in refined lead use in the U.S, and China more than offset falling demand in Europe, Japan and parts of South East Asia.
The ILZSG says global lead mine output increased by 7.4% in the first 11 months of 2008 compared with the same period in 2007 to 3.53 million metric tons--primarily due to increases in Bolivia, China, Peru, Russia and Sweden. However, ILZSG notes that world production has been declining in recent months.
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