Refined lead metal supply exceeded demand in 2023

Refined lead metal supply exceeded demand in 2023

Refined lead metal supply exceeded demand in 2023 944 692 Batteries International

February 22, 2024: The global supply of refined lead metal exceeded demand by 92 kilo-tonnes in 2023, according to the latest provisional data released by the International Lead and Zinc Study Group on February 21.

The Lisbon-based group said inventories reported by the London Metal Exchange, Shanghai Futures Exchange, producers, merchants and consumers rose by 123kt and totalled 447kt at the end of the year.

World lead mine production increased in Bolivia, Kazakhstan, Peru and Australia, where Galena Mining commissioned its 95,000 tonne-a-year Abra mine in January 2023.

These increases were partially balanced by reductions in Europe, Mexico and the US, resulting in an overall rise globally of 1.1%.

Production of refined lead worldwide increased by 2.8% in 2023, mainly as a consequence of increases in Australia, China, Germany, India and the United Arab Emirates, ILZSG said.

The increases were partially offset by reductions in Bulgaria, Italy, Japan, South Korea, Russia and the UK.

Global demand for refined lead rose by 1%, with increases in Europe, China, India, Mexico and Taiwan being largely offset by falls in South Korea Turkey and the US.

Output of refined lead from recycled material accounted for 66% of global production in 2023, which ILZSG said was a similar share to that recorded in 2022.

Meanwhile, Chinese net imports of lead contained in lead concentrates rose by 15% to total 666kt in 2023. Net exports of refined lead metal rose by 61% and amounted to 183kt.

In 2023, at $2,138, the average LME cash settlement price was 0.6% lower than that in 2022. The highest cash settlement price of $2,331 was recorded on January 4 and the lowest of $1,985 on December 1.

At Rmb15,774 ($2,194), the average Shanghai Futures Exchange cash settlement price in 2023 was 3.3% higher than that in 2022.