Global refined lead and zinc markets are likely to see a surplus in 2024, the International Lead and Zinc Study Group (ILZSG) said on Wednesday.

The global refined zinc market will see a surplus of 56,000 metric tons in 2024 compared with a previous forecast of 367,000 tons.

Prices for zinc, used to galvanise steel for the construction and auto sectors, are up 5% so far this year.

Global demand for refined zinc metal is forecast to rise by 1.8% to 13.96 million tons in 2024.

In China, the world's largest consumer, zinc usage will rise by a more contained 1.4% this year following a 7.1% increase in 2023, the ILZSG said.

The group expects world refined zinc metal output will be limited by the availability of concentrates and sees a modest increase of 0.6% to 14.01 million tons in 2024.

In October, the group expected 2024 zinc output to rise to 14.30 million tons.

In the lead market, global supply of refined metal will exceed demand by 40,000 tons in 2024, the ILZSG said.

Refined lead supply is forecast to increase by 1.4% to 13.46 million tons in 2024, while demand is seen increasing by 1.9% to 13.42 million tons this year.

Chinese demand rose by 2% last year and is anticipated to grow by a further 1.6% in 2024, ILZSG added.

(Reporting by Brijesh Patel and Daksh Grover in Bengaluru; Editing by Emelia Sithole-Matarise)