Lead Market Report January 2012

The strong economic data published by US.Asian Metal CopyrightThe strong economic data published by US.Asian Metal Copyright China and some European countries in January stimulated the confidence of investors.Asian Metal Copyright4% in 2011 in China 4 1.Asian Metal Copyright After keeping the sluggish movement for about five months, the lead prices bounced up strongly in January.Asian Metal Copyright Lead import and export data in China 18 5.Asian Metal Copyright However, many lead smelters and acid battery producers halted production in mid January for Chinese Spring Festival holidays, so the trading slowed down in the spot market during the month.Asian Metal Copyright2 Lead ingot production in China 15 4.Asian Metal Copyright Meanwhile, the continuously rising lead prices dampened the buying interest of small and mid-sized lead acid battery producers.Asian Metal Copyright3 China major lead smelters’ lead concentrate import Jan-Dec 2011 22 5.Asian Metal Copyright Most major battery producers appeared active in purchasing lead ingot from lead smelters on the long-term contracts before Spring Festival holidays.Asian Metal Copyright1 Huludao Zinc restarts its lead-zinc imperial smelting furnace 27 6.Asian Metal Copyright Therefore, the trading appeared sluggish in the Shanghai and Guangdong spot market while most lead smelters reported the bullish trading in January.

Catalog
Introduction 3
1．Financial overview 4
1.1 CPI continued to decrease in December while increased by 5.4% in 2011 in China 4
1.2 PMI increased unexpectedly in January in China 4
1.3 Economic data improved in US 5
2. International market review 5
2.1 Gold and oil prices hover at high level, underpinning base metals 5
3. Chinese lead market review 9
3.1 The trading about lead concentrate almost stagnant in China in January 9
3.2 Lead ingot prices keep rising in Chinese spot market in January 9
3.4 Secondary lead market active in China 10
3.5 Buyers still cautious about purchasing recycled lead battery 12
3.6 Processing charges of lead acid battery decline 14
4. Production Data 14
4.1 Surplus of 157,000t in the global lead market between January and November of 2011 14
4.2 Lead ingot production in China 15
4.3 China lead concentrate production up by 19.1% YOY in December 2011 16
4.4 Chinese major lead smelters’ production down by 5.53% MOM in January 2012 17
4.5 Operating rate of Chinese secondary lead 98%min producers in January 18
5. Lead import and export data in China 18
5.1 Lead import and export data in China by country: 18
5.2 Analysis on lead import & export data 20
5.2.1 China refined lead export and import decline sharply in 2011 20
5.2.2 China lead ore/concentrate import up by 6.63% YOY in December 2011 21
5.2.3 China major lead smelters’ lead concentrate import Jan-Dec 2011 22
5.3 Top ten Chinese lead ore/concentrate importers December 2011 22
5.4 China lead ore/concentrate import data by company in December 2011 23
6. Company News 27
6.1 Huludao Zinc restarts its lead-zinc imperial smelting furnace 27
6.2 Yunnan Tin’s lead smelter resumes production 27
6.3 Many lead smelters halt production in Guangxi on cadmium pollution in Longjiang River 27
7．Related Industry Development 28
7.1 China automobile production and sales data in December 2011 28
7.2 The output of lead acid battery increases by 3.31% in 2011 30
7.3 Chaowei Power Ltd, Co invested RMB250million to expand battery capacity in Zhejiang 30
8 . Market Outlook 30


Graph 1: China CPI and PPI in 2011 5
Graph 2: Three-month lead on the LME in January 2012 7
Graph 3: US gold price trend in January 2012 7
Graph 4: US crude oil price trend in January 2012 8
Graph 5: USDX trend 8
Graph 6: Lead ingot inventory on the LME in January 2012 9
Graph 7：Lead concentrate 60%min prices in the Chinese spot market in January 2012 10
Graph 8：Lead ingot 99.994%min prices in the Chinese spot market in January 2012 11
Graph 9: Secondary Lead ingot 98%min EX-VAT prices in the Chinese spot market in January 2012 12
Graph 10: Secondary lead ingot 98%min prices in the Chinese spot market in January 2012 12
Graph 11: Secondary lead ingot 99.97%min EX-VAT prices in the Chinese spot market in January 2012 13
Graph 12: Secondary Lead ingot 99.97%min EX-VAT prices in the Chinese spot market in January 2012 13
Graph 13: Recycled start-type battery EX-VAT prices in the Chinese spot market in January 2012 14
Graph 14: Recycled deep cycle battery EX-VAT prices in the Chinese spot market in January 2012 15
Graph 15: World Refined Lead Supply and Usage 2006 - 2011: 16
Graph 16: World lead supply and usage Jan-Nov 2011 16
Graph 17：China refined lead production Jan-Dec 2011 17
Graph 18: The following table is about the lead import and export data in January 2012 19
Graph 19: Chinese major lead smelters’ lead concentrate import between January and December 2011. 23
Graph 20: Top ten Chinese lead ore/concentrate importers December 2011 and the import quantities 23
Graph 21：China lead ore/concentrate import data by company in December 2011 24



.Asian Metal Copyright3 Top ten Chinese lead oreconcentrate importers December 2011 22 5Asian Metal Copyright