According to the International Lead and Zinc Study Group (ILZSG), world demand for zinc is expected to fall by around 0.1% in 2019, reaching 13.67 million tons. In 2020, instead, it will increase by 0.9% to 13.80 million tons.
On the Chinese front, after two years of decline, demand should recover, increasing by 0.6% in 2019. Despite a sharp decline in automobile production, production in the galvanizing sector increased during the first seven months of 2019 compared to the same period of 2018. The merit is above all in private construction and public infrastructure. In 2020, Chinese demand should grow by 1.2%.
In the Euro area, demand should fall by 3.7% this year, in the wake of the downturns in Germany and the United Kingdom. The English decline is due to the liquidation of British Steel, still waiting for a buyer to take over the company in difficulty. In 2020, demand should grow by 0.50%.
Demand in Japan and India is expected to decline with a recovery in 2020.
Zinc supply should increase by 2% in 2019 and by + 4.7% in 2020. The positive factor is given by the Australian output, thanks to the commissioning of mines like Lady Loretta (Glencore) or Woodlawn.
Also for lead, global demand is expected to fall by around 0.5% in 2019, while it is expected to grow by 0.8% in 2020.
Europe should register a decline as well as the United States. In China, lead demand is expected to contract by 1.1% in 2019.
The mining offer should increase by 1.7% in 2019 and by 3.9% in 2020. Production increases are expected in Australia, Mexico, Poland and South Africa. In Bolivia, Kazakhstan and the United States, production should be lower than in 2018.