By Alex MacDonald
LONDON--The global refined lead market is forecast to deliver a
42,000 metric ton surplus this year as refined lead output
outstrips demand, the International Lead and Zinc Study Group said
Thursday.
The 2013 surplus, however, is lower than the 174,000 ton surplus
forecast by the study group in Oct 2012 for 2013.
Global refined lead production is forecast to rise 4.8% to 11.13
million tons in 2013, driven primarily by a 6.2% rise in Chinese
refined lead production. Meanwhile, global lead usage is forecast
to rise 4.8% to 11.09 million tons, also driven by a 6.7% rise in
Chinese demand.
China, the world's largest consumer of many raw materials, is
forecast to increase lead demand due to more automotive and e-bike
manufacturing activity as well as the ongoing development of the
nation's mobile phone network.
Refined lead demand in Europe is expected to rise 1.9% after two
years of decline while U.S. demand is forecast to rise 1.2% this
year. Demand should also pick up in Brazil, India, Indonesia, South
Korea, Mexico, Thailand and Turkey the study group said.
On the production side, global lead mine output is forecast to
climb 3.5% to 5.43 million tons in 2013, buoyed by higher Chinese
output and the recent reopening of Ivernia's 85,000 tons a year
Paroo Station mine in Australia, the study group said.
Refined lead output in Europe is also forecast to rise due to
the recent restart of Glencore International PLC's (GLEN.LN) Kivcet
plant in Italy's Sardinia and the restart of production capacity at
Bolivia's state-owned Karachipampa plant, the study group said. It
however, noted that the timing for the restart of the latter plant
is still unclear.
ILZSG also said that refined lead output should rise in
Kazakhstan, South Korea, Mexico and the United States.
Write to Alex MacDonald at alex.macdonald@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires