AM Statistics: China's primary lead output to increase by 25.5kt in August
2015-07-31 08:50:34 [Print]
BEIJING (Asian Metal) 31 Jul 15 - According to Asian Metal’s statistics, China’s primary lead output is expected to increase further by 25.5kt in August and reached the highest monthly production level this year.
Some primary lead smelters in Hunan and Jiangxi were out of production for maintenance during June and July, and most the smelters have resumed production in July. Meanwhile, Chihong will restart its lead refinery in Qujing and its new lead smelter in Inner Mongolia will also start operating in August. All the smelters will contribute to the increase in lead output in August.
The following table shows the expected increase in lead ingot output in some lead smelters in August
Company |
Capacity (kt/a) |
Expected increase in output in August (kt) |
Zhuzhou Smelter |
100 |
4 |
Yuteng |
80 |
3 |
Jingui |
150 |
5 |
Zhenxing |
60 |
3 |
Chihong Zn & Ge |
100 |
2 |
Hulunbeier Chihong Mining |
60 |
1 |
Jinde Lead |
80 |
7 |
Total |
630 |
25.5 |
With lead smelters’ lead ingot output increasing, the oversupply in the Chinese lead ingot market may weigh on lead ingot prices. However, the bullish season for lead ingot consumption is expected to coming around in August. Meanwhile, the high production cost of lead concentrate may support lead ingot prices. Lead ingot prices may continue to linger in the range of RMB13,000-13,500/t (USD2,097-2,177/t) in August.
