Zink and lead

a) Business activity

Zinc and Lead Segment includes the following manufacturer: Baterpol S.A., ZM Silesia S.A.

Each company operates on different product markets. Baterpol S.A. deals with recycling of batteries and lead processing. ZM Silesia S.A. is engaged in the processing of zinc and lead.

The main products in this segment include:

  • Refined lead and alloy lead - used mainly for the production of batteries,
  • Zinc sheet and zinc/titanium sheet for roofing and flashings,
  • Zinc anodes used in electroplating,
  • Zinc and zinc/aluminium wire used for metal spraying,
  • Casting alloys for the steel industry,
  • Zinc oxides - used in the tyre industry, pharmaceutical industry and feed industry,
  • Lead oxides - used in batteries.

Products in this segment are primarily used in the manufacture of batteries, in the construction industry, rubber industry, electroplating and metallurgy.

b) Sales and markets

Quantitative sales and revenues from sales in the Zinc and Lead Segment in 2013 and 2012 are presented below:

CompanyProductsVolume[T]Value [TPLN]
2013201220132012
Baterpol          
  Lead and lead alloys 37,792 34,527 280,36 247,312
  Lead products 718 751 13,565 14,906
  By-products     5,09 5,056
  Processing services 300 2,725 149 4,792
  Other     3,971 2,312
  Total 38,81 38,003 303,135 274,378
ZM Silesia (Silesia Branch)        
  Metal sheet 8,975 9,465 78,685 85,421
  Anodes 1,767 1,615 13,024 12,369
  Wire 1,868 1,967 18,005 19,86
  Alloys 1,68 1,386 11,89 10,003
  Other 1 1 13,922 11,649
  Total 14,291 14,434 135,526 139,302
ZM Silesia (Oława Branch)        
  Zinc and lead oxides  23,98 21,585 163,125 150,868
  Other  41 39 27,137 14,151
  Total 24,021 21,624 190,262 165,019
Polski Cynk       1,036 138
Total Zinc and Lead Segment   77,123 74,061 629,959 578,837

The 2013 ended for the Zinc and Lead Segment with quantitative sales higher by 4%, i.e. by 3,000 tons compared to 2012. The largest growth occurred in ZM Silesia (Oława Branch) and amounted to 11%.

The main directions of sales in the Zinc and Lead Segment in the years 2013 - 2012 are shown in the following table:

Sales structure [%]20132012
Country 70% 70%
Germany 8% 10%
Slovakia 6% 0%
Czech Republic 4% 2%
France 4% 3%
Italy 2% 6%
Austria 1% 1%
Spain 1% 0%
South Korea 1% 2%
Turkey 1% 1%
Other 3% 5%
Exports as % of total sales 30% 30%
 

The share of domestic sales in the Zinc and Lead Segment in 2013 remained at the same level as in the previous year and amounted to 70pp. Export directions have changed, the share of sales to Germany decreased, and sales to Slovakia and the Czech Republic increased. 

c) Market share

Market share in the Zinc and Lead Segment should be analysed in division into product ranges, because of their different applications and user groups.

Share of the Zinc and Lead Segment in the European market, broken down by product ranges in 2013, are estimated at:

  • Lead oxides market - about 15%,
  • Zinc wire market - about 9%,
  • Zinc oxides market - about 7%,
  • Zinc/titanium sheet market - about 3%,
  • Lead and alloys market - about 2%.                           

Share of the Zinc and Lead Segment in the domestic market, broken down by ranges, in 2013:

  • Lead oxides market - about 94%,
  • Zinc wire market - about 71%,
  • Zinc oxides market - about 55%,
  • Zinc/titanium sheet market - about 44%,
  • Zinc anode market - about 39%,
  • Lead and alloys market - about 28%,
  • Zinc casting alloys market - about 12%.

d) Competition

Foreign competition in the market for zinc/titanium sheets and strips includes two of the leading companies - Rheinzink and VM Zinc, which are owned by, respectively, Grillo and Umicore.

On the domestic market, the most important competitor for lead and alloys is Orzeł Biały. The other two competitors on the market are Huta Cynku "Miasteczko Śląskie" SA and KGHM Polska Miedź SA, which have a limited product assortment, and the manufacture of lead is in the case of these two companies an "extra task", carried out in addition to the main activity.

e) Raw materials and sources of supply

The Zinc and Lead Segment mainly buys battery scrap, zinc and lead. These raw materials are purchased mainly domestically.

f)  Key parameters for the Segment

  • Prices and availability of battery scrap,
  • Demand in the automotive and construction industries, which are the main customers in the Zinc and Lead Segment