World Zinc Demand in Jan-April Rose Almost 6%, Study Group Says
London, June 22 (Bloomberg) -- Global zinc demand rose by
almost 6 percent during the first four months of this year,
buoyed by strong demand in the U.S. and parts of Southeast Asia,
an inter-governmental research group said.
Consumption of zinc, which is used as a protective coating
for steel in the construction industry, jumped to 2.728 million
metric tons from Jan. 1 to April 30 this year, up from 2.58
million tons in the year earlier period, the International Lead
and Zinc Study Group said.
Demand for zinc in the U.S. grew by 16 percent, while in
South Korea demand gained by 40 percent and in the Philippines by
56 percent, the ILZSG said. Those gains more than offset a drop
of 7.9 percent in Japanese zinc demand, the group said.
Zinc prices have risen about 12 percent on the London Metal
Exchange this year on traders' expectations demand in Asia will
rise. The three-month LME zinc contract recently traded up $1 at
$1,048 a metric ton.
Zinc output is also rising. Zinc mines worldwide produced
2.511 million metric tons of metal between January and April, the
ILZSG said. That's up from 2.458 million tons a year earlier.
The world's zinc smelters yielded 2.684 million metric tons
during the first four months of this year, up from 2.676 million
metric tons a year earlier, the report said.
Global lead production also rose during the same period. The
world's lead mines produced 1.04 million metric tons of the metal
between January and April, up from 1.03 million tons in the same
period a year earlier, the ILZSG said.
The increase was led by a surge in output in Australia where
Broken Hill Proprietary Co.'s Cannington mine and Western Metals
Ltd.'s Pillara mine both increased production, the group said.
Global refined lead output rose to 2.062 million metric tons
in the first four months of 1999, from 1.982 million tons a year
earlier, the report said.
Lead consumption jumped 2.9 percent to 2.065 million metric
tons, from 2.007 million tons during the corresponding period in
1998, the ILZSG said.
Three-month lead recently traded 50 cents lower at $509 a
metric ton on the LME.
--Dudley White in the London newsroom (44) 171-330-7126/am
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