It is known that the domestic battery industry has neared settling down the negotiations on the offering quantities with the lead suppliers with the talks on the premium levels backlogged alone. The talks on the premium is however expected to go ahead rapidly because of the rising export and import quantities both though it is inherently sensitive. In case of the 4N lead with over 99.99% concentrate, the premium is expected to rally versus the last year on instable supply and demand status this year.
However, the rise is probably limited considering the stable lead supply and deteriorating battery industry, the market analysts predicted. The domestic lead consumption will be possibly down 5 percent more or less this year due to the slowdown of the world automotive industry with the result of increasingly supply around the globe. Korea Zinc sold a total of 156,000 tons of 4N lead last year, recording a historical high since 2008. The domestic needs for 4N lead continued growth since 2014 and therefore, the industry plans to expand the sales target this year under the stagnating demand at the domestic market.
It seems that Korea Zinc is going to reduce about 20,000 tons of lead export to the US market this year, owing to the domestic market in which some of the reduced quantities in export should be disposed.
On the contrary, recycled lead(under 99.99% concentrate) industry is taking the positions not to be bound to the long-term contracts. They are more active to drive up the export prior to the long-term contracts, coping with the backlogging inventories as in the previous year because the domestic battery industry is poised to concentrate in imports otherwise trading with the certain recycled lead producers.
Last year, Korea’s lead import quantities increased 10 percent year on year to 144,754 metric tons, while expecting to sustain the similar level this year. The competition also intensified among the domestic recycled lead producers, yet they are showing different response this year. Some prefers acquisition of quantities as much as possible regardless of premium variation, while others will not be controlled any more by the battery industry as in the case of the last year. That said, they are in common to export the quantities by 25 percent at least out of the entire recycled lead production this year.
Source: Steel&Metal News |
