The global zinc market saw a reduction in supply shortage in November 2024, easing to 52,900 tons from 65,400 tons in October, according to the International Lead and Zinc Study Group. Despite a cumulative shortage of 33,000 tons from January to November, this was a significant shift from the 312,000-ton surplus recorded in the same period in 2023. The change was driven by mine closures aimed at reducing costs after zinc prices began to decline in 2023. However, with some idled mines resuming operations in 2025, a projected oversupply of 148,000 tons could emerge.
The lead market experienced a contrasting trend, shifting to a 154,000-ton shortage in November, following an 8,900-ton surplus in October. The cumulative lead market balance turned to a slight 1,000-ton surplus by November, compared to a 61,000-ton oversupply in 2023. While lead faced a deficit of 187,000 tons in 2022, it moved to an excess of 115,000 tons in 2023, with 2024 estimated to post a slight shortage once again.
China’s zinc and lead production patterns also diverged. Zinc output in December declined by 6.9% to 597,000 tons, with annualized production expected to decrease by 4% to 6.83 million tons. Conversely, lead production rose by 6% in December, reaching 690,000 tons and contributing to a 1% year-on-year increase to 7.637 million tons by year-end.
Meanwhile, Korea Zinc, the world’s largest zinc refinery, adopted all resolutions at a shareholders’ meeting on January 23. However, Youngpoong Corporation, holding a 46.72% stake in Korea Zinc, was reportedly unable to exercise its voting rights due to cross-shareholding restrictions under Korean commercial law. Youngpoong opposed this restriction, raising the likelihood of legal disputes ahead of Korea Zinc’s regular shareholders’ meeting in March.
