Lead Market Report March 2015

Introduction 4
1. International Market Review 4
1.1 LME lead futures bounce back after a bout of sharp decline in March 4
2. Chinese market review 5
2.1 Lead concentrate supply increases on the Chinese market in March 5
2.2 Chinese lead ingot market warms slightly and smelters reduce inventories 6
2.3 Some secondary lead smelters resume production with the prices falling slightly in March 7
2.4 Recycled lead battery trading active in March 9
2.5 Lead acid battery demand revives slowly in March 11
3. Production Data 12
3.1 Demand for refined lead metal exceeds supply by 8.6kt in global refined lead market in January 2015 12
3.2 Lead production in China 13
3.2.Asian Metal Copyright22%YOY in February 2015 26 7．Market Outlook 27 Graph 1: The price graph of lead futures on the LME in March 2015 4 Graph 2: Lead ingot inventories in LME warehouses in March 2015 5 Graph 3: Lead concentrate 60%min prices on the Chinese spot market in March 2015 6 Graph 4 Lead ingot 99.Asian Metal Copyright1 China’s lead concentrate output down by 11.45% YOY Jan-Feb 2015 13
3.2.Asian Metal Copyright1 Demand for refined lead metal exceeds supply by 8.Asian Metal Copyright2 China’s refined lead output declines by 5.35% YOY in the first two months of 2015 14
3.2.Asian Metal Copyright2.Asian Metal Copyright3 Chinese primary lead smelters’ lead ingot output up by 22.98% MOM in March 2015 14
3.2.4 Secondary lead output from Chinese medium and large smelters up by 103% MOM in March 16
3.2.5 Recycled lead battery inventories held by Chinese medium-to-large secondary lead smelters up by 170% MOM by the end of March 17
3.2.Asian Metal Copyright4 Secondary lead output from Chinese medium and large smelters up by 103% MOM in March 16 3.Asian Metal Copyright6 Chinese medium and large smelters’ secondary lead stocks up by 48.5% MOM in late March 17
3.2.Asian Metal Copyright2 Lead production in China 13 3.Asian Metal Copyright7 Lead ingot stocks at Chinese primary lead smelters down by 50.83% MOM late March 2015 18
4. Import and export data in China 19
4.1 Lead import and export data in China by country: 19
4.2 Analysis of lead import & export data 21
4.2.1 China’s lead ore/concentrate imports down by 7.16% YOY in February 2015 21
4.2.Asian Metal Copyright2.Asian Metal Copyright2 China’s refined lead exports down by 11.82% YOY in February 2015 23
4.3 Top ten Chinese lead ore/concentrate importers in Feburary 2015 23
4.4 Chinese lead acid battery exports down by 21% MOM in February 24
5. Company News 25
5.1 Qianxin Mining’s lead-zinc mine to resume production in late April 25
5.2 Shache Hengchang’s lead smelter resumes operation in mid-March 26
5.3 Zhenxing Lead halts production temporarily 26
5.4 Chengyuan lead smelter halts production for maintenance in mid-March 26
5.5 Yindu Mining’s lead-zinc-silver mine resumes production in late March 26
6. Related industry Developments 26
6.1 China’s automobile sales down by 0.22%YOY in February 2015 26
7．Market Outlook 27

Graph 1: The price graph of lead futures on the LME in March 2015 4
Graph 2: Lead ingot inventories in LME warehouses in March 2015 5
Graph 3: Lead concentrate 60%min prices on the Chinese spot market in March 2015 6
Graph 4 Lead ingot 99.994%min prices on the Chinese spot market in March 2015 7
Graph 5 Secondary Lead 98%min EX-VAT prices on Chinese market in March 2015 8
Graph 6 Secondary Lead 98%min prices on the Chinese spot market in March 2015 9
Graph 7 Recycled start-type lead battery EX-VAT prices on the Chinese spot market in March 2015 10
Graph 8 Recycled deep cycle lead battery EX-VAT prices on the Chinese spot market in March 2015 10
Graph 9 Processing charges for deep cycle lead battery polar plate in March 2015 11
Graph 10 Processing charges of start-type lead battery polar plate in March 2015 12
Graph 11 Chinese Primary lead smelters’ lead ingot production and operating rates Jan 2014-Mar 2015 15
Graph 12 China's secondary lead output statistics by month 16
Graph 13 China's secondary lead smelters' recycled lead battery inventory statistics by month 17
Graph 14 China's secondary lead smelters' secondary lead inventory statistics by month 18
Graph 15 China’s lead concentrate imports Jan 2013-Feb 2015 21
Graph 16 Lead ore/concentrate imported from Australia into China Jan 2014-Feb 2015 22
Graph 17 Lead ore/concentrate imported from Peru into China Jan 2014-Feb 2015 23
Graph 18 China’s refined lead exports during January 2014 and January 2015 23
Graph 19 China's lead acid battery export volume statistics by month 24
Graph 20 China's start-type lead acid battery export volume statistics by month 25

Table 1: World Refined Lead Supply and Usage 2010 – 2015 13
Table 2 China’s lead concentrate output by province between January and February 2015 14
Table 3 Operating rates for lead smelters in Henan, Hunan and Yunnan in March 2015 15
Table 4 Lead ingot stocks in Henan, Hunan and Yunnan provinces in late March 19
Table 5: China’s lead import and export data in February 2015 21
Table 6 Top ten Chinese lead ore/concentrate importers in February 2015 24
Table 7 Top 10 Chinese lead-acid battery export destinations in February 25

.Asian Metal Copyright994%min prices on the Chinese spot market in March 2015 7 Graph 5 Secondary Lead 98%min EX-VAT prices on Chinese market in March 2015 8 Graph 6 Secondary Lead 98%min prices on the Chinese spot market in March 2015 9 Graph 7 Recycled start-type lead battery EX-VAT prices on the Chinese spot market in March 2015 10 Graph 8 Recycled deep cycle lead battery EX-VAT prices on the Chinese spot market in March 2015 10 Graph 9 Processing charges for deep cycle lead battery polar plate in March 2015 11 Graph 10 Processing charges of start-type lead battery polar plate in March 2015 12 Graph 11 Chinese Primary lead smelters’ lead ingot production and operating rates Jan 2014-Mar 2015 15 Graph 12 China's secondary lead output statistics by month 16 Graph 13 China's secondary lead smelters' recycled lead battery inventory statistics by month 17 Graph 14 China's secondary lead smelters' secondary lead inventory statistics by month 18 Graph 15 China’s lead concentrate imports Jan 2013-Feb 2015 21 Graph 16 Lead oreconcentrate imported from Australia into China Jan 2014-Feb 2015 22 Graph 17 Lead oreconcentrate imported from Peru into China Jan 2014-Feb 2015 23 Graph 18 China’s refined lead exports during January 2014 and January 2015 23 Graph 19 China's lead acid battery export volume statistics by month 24 Graph 20 China's start-type lead acid battery export volume statistics by month 25 Table 1: World Refined Lead Supply and Usage 2010 – 2015 13 Table 2 China’s lead concentrate output by province between January and February 2015 14 Table 3 Operating rates for lead smelters in Henan, Hunan and Yunnan in March 2015 15 Table 4 Lead ingot stocks in Henan, Hunan and Yunnan provinces in late March 19 Table 5: China’s lead import and export data in February 2015 21 Table 6 Top ten Chinese lead oreconcentrate importers in February 2015 24 Table 7 Top 10 Chinese lead-acid battery export destinations in February 25 Asian Metal Copyright