 |
| ILZSG |
The global refined zinc and lead markets are poised for surplus in 2025, according to the International Lead and Zinc Study Group (ILZSG). The organization released its latest forecast on Friday, highlighting rising production levels that will outpace growing demand.
The ILZSG projects a surplus of 93,000 metric tons in the refined zinc market and 82,000 metric tons in refined lead. This marks a shift from previous tighter supply-demand balances and signals possible downward pressure on prices in the year ahead.
For refined lead, global demand is expected to increase by 1.5% in 2025, reaching 13.19 million metric tons. However, refined lead production is forecast to rise by 1.9% to 13.27 million tons. This increase will come primarily from major producers such as China, India, Mexico, and the United States.
In the refined zinc sector, demand is forecast to grow by 1% to 13.64 million metric tons. At the same time, global output is projected to climb by 1.8% to 13.73 million tons. This production gain is largely attributed to the improved availability of zinc concentrates, a key input in smelting operations.
ILZSG also noted a significant rebound in mined zinc output, which is expected to grow by 4.3% to 12.43 million metric tons in 2025. This follows three consecutive years of decline caused by both planned and unplanned mine closures worldwide.
As of Friday, zinc was trading at approximately $2,670 per ton and lead at around $1,955 per ton on the London Metal Exchange. The projected oversupply may put pressure on both markets, affecting investor sentiment and pricing trends throughout the year.
The anticipated surpluses underline the importance of tracking mine restarts and global smelter utilization, particularly in key producing regions like Asia and North America.
Tags
RAW MATERIAL
