Lead Market Report June 2014

Introduction 4
1. Financial Overview 4
1.1 Domestic financial overview 4
1.1.Asian Metal Copyright41% YOY in May 2014 17 4.Asian Metal Copyright1 CPI up by 2.Asian Metal Copyright1 World demand for refined lead metal exceeds supply by 12kt Jan-Apr 2014 16 4.Asian Metal Copyright5% and PPI down by 1.4% YOY in May 4
1.1.Asian Metal Copyright3 Xinjiang Hengchang’s lead output declines in June 31 6.Asian Metal Copyright2 PMI up by 0.2% in June 4
1.2 International financial overview 5
1.2.1 Crude oil futures prices increase with fluctuations 5
1.2.2 US dollar index declines after skyrocketing 6
2. International Market Review 6
2.1 Lead futures bounce up on LME in June 6
3. Chinese market review 8
3.1 Chinese lead concentrate market firm 8
3.2 Chinese lead ingot prices fluctuate narrowly in June 9
3.3 Secondary lead prices rebound 10
3.4 Recycled lead battery prices move up 12
3.5 Lead acid battery demand weak in June 14
4. Production Data 16
4.1 World demand for refined lead metal exceeds supply by 12kt Jan-Apr 2014 16
4.2 Lead production in China 16
4.2.Asian Metal Copyright4 Secondary lead output of largest smelters up by 14% MOM in June 19 4.Asian Metal Copyright1 China refined lead ingot production up by 16.1% MOM in May 2014 16
4.2.Asian Metal Copyright2 China’s lead concentrate production down by 11.Asian Metal Copyright2 China’s lead concentrate production down by 11.41% YOY in May 2014 17
4.2.3 Chinese primary lead smelters’ operating rate stable in June 17
4.2.4 Secondary lead output of largest smelters up by 14% MOM in June 19
4.2.Asian Metal Copyright Chinese market review 8 3.Asian Metal Copyright5 Lead ingot stocks at Chinese primary lead smelters down by 32.36% MOM in late June 2014 19
4.2.6 Recycled lead battery inventories held by major secondary lead smelters down by 18% MOM by end of June 20
4.2.7 Major Chinese smelters’ secondary lead inventories down by 33% MOM by end of June 21
5. Import and export data in China 22
5.1 Lead import and export data in China by country: 22
5.2 Analysis of lead import & export data 23
5.2.1 China’s lead ore/concentrate imports up by 40.08% YOY in May 2014 23
5.2.Asian Metal Copyright2.Asian Metal Copyright2 China’s refined lead exports down by 34.42% MOM in May 2014 25
5.3 Top ten Chinese lead ore/concentrate importers in May 2014 27
5.4 China’s lead acid battery exports up by 13% MOM in May 27
6. Company News 30
6.1 Guangxi Chengyuan plans to launch a new lead smelting project 30
6.2 Nanfang plans to launch a 100ktpy lead smelting project 30
6.3 Xinjiang Hengchang’s lead output declines in June 31
6.4 Ruifeng Lead’s lead refinery project delays production plan 31
7. Related industry Developments 31
7.1 China’s automobile sales volumes up by 8.5% YOY in May 31
8． Market Outlook 31

Graph 1 China's CPI and PPI trend in 2012-2014 4
Graph 2 PMI index of Chinese manufacturing industry 5
Graph 3 Crude oil futures prices trend in the US major transaction market in June 6
Graph 4 US dollar index trend 6
Graph 5: The price graph of lead futures on the LME in June 2014 7
Graph 6: Lead ingot inventories in LME warehouses in June 2014 8
Graph 7: Lead concentrate 60%min prices on the Chinese spot market in June 2014 9
Graph 8: Lead ingot 99.994%min prices on the Chinese spot market in June 2014 10
Graph 9 Secondary Lead 98%min EX-VAT prices on Chinese market in June 2014 11
Graph 10 Secondary Lead 98%min prices on the Chinese spot market in June 2014 11
Graph 11 Secondary Lead 99.97%min EX-VAT prices on the Chinese spot market in June 2014 12
Graph 12 Secondary Lead 99.97%min prices on the Chinese spot market in June 2014 12
Graph 13 Recycled start-type lead battery EX-VAT prices on the Chinese spot market in June 2014 13
Graph 14 Recycled deep cycle lead battery EX-VAT prices on the Chinese spot market in June 2014 14
Graph 15 Processing charges for deep cycle lead battery polar plate in June 2014 15
Graph 16 Processing charges of start-type lead battery polar plate in June 2014 15
Graph 17: Chinese Primary lead smelters’ lead ingot production and operating rates Jun 2013-Jun 2014 18
Graph 18 Large secondary lead smelters' output by region 19
Graph 19 Major secondary lead smelters' recycled lead battery inventories by region 21
Graph 20 Secondary lead inventory of largest smelters by region 21
Graph 21: China’s lead concentrate imports Jan 2013-May 2014 24
Graph 22: Lead ore/concentrate imported from Australia into China Jan-May 2014 25
Graph 23: Lead ore/concentrate imported from Peru into China Jan-May 2014 25
Graph 24: China refined lead exports 2013-2014 26
Graph 25: China’s lead acid battery export in 2013-2014 28
Graph 26: Price graph of lead ingot on the Chinese spot market in May: RMB/t 29
Graph 27: Price graph of secondary lead 98%min on the Chinese spot market in May: USD/t 29

Table 1: World Refined Lead Supply and Usage 2009-2014 16
Table 2: Operating rates for lead smelters in Henan, Hunan and Yunnan in Jun 2014 18
Table 3: Lead ingot stocks in Henan, Hunan and Yunnan provinces in late June 2014 20
Table 4: China’s lead import and export data in May 2014 23
Table 5: China’s refined lead export destinations and export quantities in May 2014 26
Table 6: Top ten Chinese lead ore/concentrate importers in May 2014 27
Table 7 The top 20 importing countries for Chinese lead acid batteries in May 30











.Asian Metal Copyright5 Lead ingot stocks at Chinese primary lead smelters down by 32Asian Metal Copyright