Lead Market Report June 2012

Introduction
The lead ingot market appeared relatively stable in the first half of June with lead futures lingering at around USD1,900/t on the LME while the lead ingot 99.994%min prices lingering at about RMB15,000/t in the Chinese spot market.Asian Metal Copyright Catalog Introduction 4 1．Financial overview 4 1.Asian Metal Copyright However, the lead ingot prices dropped significantly in the second half of June, as the economic data released by China, the USA and the European countries were weak, market participants worried that Greece may quit from EU and the Spanish and Italian bond yields surged greatly. The lead prices touched USD1,746/t on the LME and about RMB14,500/t in the Chinese spot market, the lowest level in 2012 so far.


Catalog
Introduction 4
1．Financial overview 4
1.1 China’s CPI in May touches 23-month low 4
1.2 Chinese PMI falls in June 5
1.3 Metals under great pressure from kinds of negative news 6
2. International market review 7
2.1 Global crude oil prices linger at low levels in June 7
2.2 USD index keeps at a high level in June 7
3. Chinese lead market review 9
3.1 Chinese lead concentrate market slows down on great drop of lead and silver prices 9
3.2 Lead ingot prices dropped greatly in Chinese spot market in June 10
3.3 Demand for secondary lead decreases on the drop of lead prices 11
3.4 Supply of recycled lead battery decreases obviously in June 13
4. Production Data 15
4.1 Lead Markets In Surplus Of 22000 Tons in Jan-Apr 2012: ILZSG 15
4.2 Lead production in China 16
4.2.Asian Metal Copyright2 China’s lead concentrate import up by 3.Asian Metal Copyright1 China lead concentrate production increases by 8.75% MOM in May 2012 16
4.2.Asian Metal Copyright4 China lead oreconcentrate import data by company in May 2012 24 5.Asian Metal Copyright2 China lead ingot production up by 4.5% MOM in May 2012 17
4.3 Chinese major lead smelters’ June production rate declines on sluggish lead market 18
4.4 The operation rates of large-sized secondary lead smelters in China in June 19
5. Lead import and export data in China 20
5.1 Lead import and export data in China by country: 20
5.2 Analysis on lead import & export data 21
5.2.1 China’s refined lead import up by 149% MOM in May 2012 22
5.2.Asian Metal Copyright2 Chinese PMI falls in June 5 1.Asian Metal Copyright2 China’s lead concentrate import up by 3.39% MOM in May 2012 22
5.3 Top ten Chinese lead ore/concentrate importers May 2012 23
5.4 China lead ore/concentrate import data by company in May 2012 24
5.5 China lead acid battery export reaches a new high in May 2012 29
6. Company News 31
6.1 Dugald River accommodation contract awarded to Minmetals Australia 31
6.2 Baiyinnuoer Lead Zinc Mine to expand production capacity 32
6.3 Shibao Mining and Smelting postpones commissioning date 32
6.4 Haicheng Chengxin’s lead smelter halts production for maintenance in late June 32
6.5 Guiyang Yinxing’s lead smelter halts production for maintenance 32
7．Related Industry Development 33
7.1 China automobile production declines by 4.7% MOM in May 2012 33
8. Market Outlook 33


Graph 1: China CPI and PPI in 2011 5
Graph 2: China’s PMI Index in 2011-2012 6
Graph 3: The price of international crude oil in June 7
Graph 4：US Dollar Index in June 2012 8
Graph 5: Lead ingot inventory on the LME in June 2012 9
Graph 6: Lead concentrate 60%min prices in the Chinese spot market in June 2012 10
Graph 7：Lead ingot 99.994%min prices in the Chinese spot market in June 2012 11
Graph 8: Secondary Lead ingot 98%min EX-VAT prices in the Chinese spot market in June 2012 12
Graph 9: Secondary lead ingot 98%min prices in the Chinese spot market in June 2012 12
Graph 10: Secondary lead ingot 99.97%min EX-VAT prices in the Chinese spot market in June 2012 13
Graph 11: Secondary Lead ingot 99.97%min EX-VAT prices in the Chinese spot market in June 2012 13
Graph 12: Recycled start-type battery EX-VAT prices in the Chinese spot market in June 2012 14
Graph 13: Recycled deep cycle battery EX-VAT prices in the Chinese spot market in June 2012 15
Graph 14: World Refined Lead Supply and Usage 2007 - 2012: 16
Graph 15 Operating rate for the biggest secondary lead plants in China in June 20
Graph 16: The following table is about the lead import and export data in May 2012 20
Graph 17: Top ten Chinese lead ore/concentrate importers in May 2012 and the import quantities 23
Graph 18：China lead ore/concentrate import data by company in May 2012 24
Graph 19: Export of Chinese lead acid battery in 2011-2012 30
Graph 20: Average export price trend of Chinese lead-acid storage battery in 2011-2012 31

.Asian Metal Copyright2 China lead ingot production up by 4Asian Metal Copyright