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MARKETS Lead and Zinc Remain in Over Supply The International Lead and Zinc Study Group (ILZSG) released preliminary 2012 data for world lead and zinc supply and demand. The global supply of refined lead metal exceeded demand by 64,000 metric tons (mt). Inventories reported by the London Metal Exchange (LME), Shanghai Future Exchange (SHFE) and producers and consumers increased by 23,000 mt totaling 628,000 mt at the year end. Global lead mine production increased by 11.5% compared to 2011. The increase was principally due to a reported 20.4% rise in China. Rises in output of refined lead metal in India, the Republic of Korea, the United Kingdom and the United States were largely balanced by reductions in other regions resulting in a limited increase of 0.2%. World usage increased by 1.3%. This was primarily a consequence of higher demand in India, Japan, Mexico and the United States. Apparent demand in China was unchanged from 2011. China's imports of lead contained in lead concentrates rose by 26.3% to reach a record of just over 1 million mt. Prices on the LME averaged $2,061/mt during 2012, 14% lower than during 2011. The highest price, $2,340/mt, was recorded on December 31, 2012, and the lowest price, $1,744/mt, occurred on June 27. Global output of refined zinc metal exceeded usage by 265,000 mt, the sixth successive year that the market has been in surplus. Inventories increased by 426,000 mt to total 2,195,000 mt. Lead Statistics (000 metric tons) Mine production World Total China Australia Europe USA Metal Production Refined Usage Stocks 2008 003,805 001,403 000,612 000,320 000,410 009,196 009,188 000,306 2009 03,833 01,604 00,529 00,325 00,406 09,204 09,212 00,389 2010 04,327 01,981 00,661 00,327 00,372 09,816 09,795 00,446 2011 04,645 02,358 00,531 00,360 00,342 10,594 10,418 00,605 2012 % Change 05,178 11.5% 02,838 20.4% 00,527 -0.8% 00,374 03.9% 00,340 -0.5% 10,617 00.2% 10,553 01.3% 00,628 12,486 03,842 01,458 01,470 01,008 12,885 12,637 01,562 12,948 04,308 01,472 01,256 01,034 13,120 12,754 01,769 13,604 04,930 01,492 01,281 01,055 12,660 12,395 02,195 Zinc Statistics (000 metric tons) World Total China Australia Peru Europe Metal Production Refined Usage Stocks 118,882 003,343 001,466 001,603 001,016 011,772 011,574 000,819 11,608 03,324 01,260 01,509 01,010 11,282 10,920 01,220 An increase in global zinc mine output of 5.1% compared to 2011 was mainly due to a reported 14.4% increase in China. In contrast to mine production, global refined zinc metal output decreased by 3.5%. This was primarily influenced by falls in output in Australia, Brazil, Bulgaria, Canada, China, India and South Africa. A reduction in global demand for refined zinc metal of 2.8% was principally a consequence of falls in usage in Europe and China of 6.8% and 3.2% respectively. Demand also decreased in Japan and the United States. The most significant increases were recorded 05.1% 14.4% 01.4% 02.0% 02.1% -3.5% -2.8% in India, the Republic of Korea and Turkey. Chinese imports of zinc contained in zinc concentrates declined by 34% to 821,000 kt. However, net imports of refined zinc metal increased by 68.5% to 509,000 kt. Prices on the LME averaged $1,946/mt during 2012, 11.1% during 2011. The highest price, $2,179/mt, was recorded on January 26, 2012, and the lowest price, $1,760/mt, occurred on June 27. Further details about the International Lead and Zinc Study Group together with a full list of publications are available at www.ilzsg.org. (March 1, 2013) Precious Metals ($/oz) Gold $1,576.80 Silver Platinum Palladium Rhodium Ruthenium $28.58 $1,574.00 $721.00 $1,250.00 $85.00 Base Metals ($/mt) Minor Metals ($/mt) Exchange Rates (U.S.$ Equivalent) Aluminum $1,927.00 Molybdenum $24,700 Euro (€) 1.3011 Copper $7,751.00 Cobalt $26,750 U.K. (£) 1.5051 Lead $2,235.00 Canada ($) 0.9719 Nickel $16,540.00 Australia ($) 1.0160 Tin $23,350.00 South Africa (Rand) 0.1101 Zinc $1,991.50 China (¥) 0.1592 Iron Ore ($/dmt) Fe CFR China $150.00 Gold and silver prices provided by KITCO Bullion dealers (http://www.kitco.com). Platinum group metals prices provided by Johnson Matthey (http://www.platinum.matthey.com). Non-ferrous base and minor metal prices provided by London Metal Exchange (http://www.lme.co.uk). Iron ore prices provided by Metal Bulletin Iron Ore Index. Currency exchange rates were provided by the GoCurrency.com. 88 E&MJ; • MARCH 2013 www.e-mj.com