LONDON, July 18, 2017 /PRNewswire/ --

After several years of surplus, the refined lead market is moving into deficit this year, driven largely by shortfalls in primary raw material availability. The global concentrates deficit has already started to bite, with miners able to successfully negotiate a substantial decrease in contract TCs for 2017.

     (Logo: http://mma.prnewswire.com/media/536199/CRU_Logo.jpg )

Market deficits bring renewed interest in mine projects but the pipeline of lead mine projects outside China looks thin for the next few years. Most sizeable greenfield projects in the pipeline are not far enough progressed for their development to be accelerated to fill the emerging deficit, but we can see additional production coming on stream from potential redevelopments and reactivations.

Attention turning to projects as market deficits loom
After several years of surplus, the refined lead market is moving into deficit this year, driven mainly by shortfalls in primary, rather than secondary, raw material availability. The market moved into a statistical deficit since the final quarter of 2016, although stocks remain sufficient to cover shortfalls in the immediate future. Nevertheless, the global concentrates deficit has already started to bite, with miners able to successfully negotiate a substantial decrease in contract TCs for 2017, and Korea Zinc trimming refined lead production at its Onsan plant in South Korea after a big increase last year. With deficits looming, upward pressure on prices is expected to return later this year, and with it renewed interest in mine projects. However, the majority of lead production is as a by-product of zinc or silver, and development decisions depend more on the prices for its co-products than for lead. This said, the outlook for zinc is currently also positive.

Read the full story: http://bit.ly/Lead-Mine-Project-Pipeline

Read more about CRU: http://bit.ly/About_CRU

About CRU
CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China. CRU employs over 250 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia - our office in Beijing opened in 2004.

When facing critical business decisions, you can rely on this first-hand knowledge to give you a complete view on a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU - big enough to deliver a high quality service, small enough to care about all of our customers.

SOURCE CRU