LONDON (Thomson Financial) - The deficit between lead supply and demand narrowed in the first quarter of 2008 from a year before, while the surplus in the zinc market grew, as demand for both metals from European users declined, the International Lead and Zinc Study Group said.
In its latest monthly report on the lead and zinc markets, the ILZSG said the global lead market recorded a 7,000 tonne deficit in the first three months of the year, against a 38,000 tonne deficit a year before.
The zinc market surplus meanwhile grew to 72,000 tonnes in the first quarter, from 59,000 tonnes in the same period of the previous year.
Refined zinc output remained relatively static from a year ago at 2.839 million tonnes from 2.837 million, while call for the metal dipped by 11,000 tonnes. The fall in demand was particularly noticeable in Europe, where consumption dropped by 11.9 percent.
Chinese net exports of refined zinc dropped to one tonne in the period, against 126,000 tonnes a year before. Meanwhile the Asian giant's imports of refined zinc concentrates rose by 136,000 tonnes.
Elsewhere refined lead production grew by 23,000 tonnes, or 1.2 percent, as output increased in Australia, Canada and Asia. However, this was outweighed by an 8,000 tonne decrease in demand for the heavy metal, it said, with European usage dropping by 5.5 percent.
Chinese net exports of refined lead fell by 19,000 tonnes in the first quarter to 16,000 tonnes. jan.harvey@thomsonreuters.com har/rw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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