Initial estimates show that the refined lead and refined zinc markets are in a surplus zone in 2011 till April, with production exceeding usage. The International Lead and Zinc Study Group preliminary estimates show excess refined lead metal production of 74,000 tonnes, with reported inventories rising by 126,000 tonnes. Higher lead output in Australia, China, Germany and the US was the main reason behind the 14% rise in the metal production. Usage increased chiefly due to a 26.5% increase in apparent demand in China, with smaller increases in the US and Europe.
Also see | Smelting A Surplus (PDF)
In Zinc, the refined market was in surplus by 178,000 tonnes, as metal output rose by 3.9% due to a rise in production in China, India and Peru. Demand for the metal rose 3.8%, with a 7.3% increase in apparent demand in China and 6.8% in Europe. Both metals are trading in a range with a downward bias since January on the London Metal Exchange.
Graphic by Ahmed Raza Khan/Mint
We welcome your comments at firstname.lastname@example.org