Lead Market Report August 2014

Introduction 5
1. Financial news 5
1.1 Chinese domestic financial overview 5
1.1.Asian Metal Copyright2 Lead production in China 18 4.Asian Metal Copyright1 CPI up by 2.Asian Metal Copyright3 Chengxin Nonferrous Metal’s lead ingot output to increase by around 30% in August 33 6.Asian Metal Copyright3% and PPI down by 0.9% YOY in July 5
1.1.2 August PMI down obviously 6
1.2 International financial overview 6
1.2.1 Crude oil futures prices keep falling back 6
1.2.2 US dollar strong again amid depressed European economy 7
2. International Market Review 8
2.1 Lead futures consolidate on LME during August 8
3. Chinese market review 9
3.1 Chinese lead concentrate prices retreat during August 9
3.2 Chinese lead ingot prices drop in August 11
3.3 Secondary lead prices decline 12
3.4 Recycled lead battery supply delines accidentally 15
3.5 Lead acid battery demand revives less short of expectations 16
4. Production Data 18
4.1 World demand for refined lead metal exceeds supply by 23kt Jan-Jun 2014 18
4.2 Lead production in China 18
4.2.Asian Metal Copyright2.Asian Metal Copyright1 China’s lead concentrate output down by 3.52% YOY in July 2014 18
4.2.2 China’s refined lead ingot production down by 9% MOM in July 2014 19
4.2.Asian Metal Copyright4 Jiyuan Wanyang to expand lead production capacity to 250,000tpy in October 33 7.Asian Metal Copyright3 Chinese primary lead smelters’ operating rate rises slightly to 65.34% in August 19
4.2.4 Secondary lead output of largest smelters down by 1% MOM in August 21
4.2.Asian Metal CopyrightIntroduction 5 1.Asian Metal Copyright5 Lead ingot stocks at Chinese primary lead smelters up by 5.29% MOM in late August 2014 22
4.2.6 Recycled lead battery inventories held by major secondary lead smelters down by 7% MOM by the end of August 23
4.2.7 Major smelters’ secondary lead stocks down by 12% MOM in late August 24
5. Import and export data in China 24
5.1 Lead import and export data in China by country: 24
5.2 Analysis of lead import & export data 26
5.2.1 China’s lead ore/concentrate imports up by 23.54% YOY in July 2014 26
5.2.Asian Metal Copyright1 Lead import and export data in China by country: 24 5.Asian Metal Copyright2 China’s refined lead exports up by 51.38% MOM in July 2014 29
5.3 Top ten Chinese lead ore/concentrate importers in July 2014 30
5.4 Chinese lead acid battery exports up by 4.1% MOM in July 31
5.5 Chinese lead-acid battery export destinations in July 32
6. Company News 32
6.1 Jinwang Mine’s zinc mining project to start operation in late 2014 32
6.2 Baoxi Industry & Trading’s 40,000tpy lead smelter to start trial production in November 33
6.3 Chengxin Nonferrous Metal’s lead ingot output to increase by around 30% in August 33
6.4 Jiyuan Wanyang to expand lead production capacity to 250,000tpy in October 33
7. Related industry Developments 33
7.1 China’s automobile sales volumes up by 6.71% YOY in July 33
8． Market Outlook 34

Graph 1: China’s CPI and PPI trend in 2012-2014 5
Graph 2: China’s PMI in 2012-2014 6
Graph 3: US crude oil futures price trend on major transaction market in August 7
Graph 4: US dollar index trend 8
Graph 5: The price graph of lead futures on the LME in August 2014 9
Graph 6: Lead ingot inventories in LME warehouses in August 2014 9
Graph 7: Lead concentrate 60%min prices on the Chinese spot market in August 2014 10
Graph 8: Lead ingot 99.994%min prices on the Chinese spot market in August 2014 11
Graph 9: Secondary Lead 98%min EX-VAT prices on Chinese market in August 2014 13
Graph 10: Secondary Lead 98%min prices on the Chinese spot market in August 2014 13
Graph 11: Secondary Lead 99.97%min EX-VAT prices on the Chinese spot market in August 2014 14
Graph 12: Secondary Lead 99.97%min prices on the Chinese spot market in August 2014 14
Graph 13: Recycled start-type lead battery EX-VAT prices on the Chinese spot market in August 2014 15
Graph 14: Recycled deep cycle lead battery EX-VAT prices on the Chinese spot market in August 2014 16
Graph 15: Processing charges for deep cycle lead battery polar plate in August 2014 17
Graph 16: Processing charges of start-type lead battery polar plate in August 2014 17
Graph 17: Chinese Primary lead smelters’ lead ingot production and operating rates Aug 2013-Aug 2014 20
Graph 18: Large secondary lead smelters' output by region 21
Graph 19: 19 Secondary lead output of Chinese large smelters in 2013-2014 22
Graph 20: Major secondary lead smelters' recycled lead battery inventories by region 23
Graph 21: Secondary lead stocks allocation of Chinese major smelters 24
Graph 22: China’s lead concentrate imports Jan 2013-Jul 2014 27
Graph 23: Lead ore/concentrate imported from Australia into China Jan-Jul 2014 28
Graph 24: Lead ore/concentrate imported from Peru into China Jan-Jul 2014 28
Graph 25: China refined lead exports 2013-2014 30
Graph 26: China’s lead acid battery export in 2013-2014 31

Table 1: World Refined Lead Supply and Usage 2009 - 2014 18
Table 2: Operating rates for lead smelters in Henan, Hunan and Yunnan in Aug 2014 20
Table 3: Lead ingot stocks in Henan, Hunan and Yunnan provinces in late August 2014 22
Table 4: China’s lead import and export data in July 2014 26
Table 5: China’s refined lead export destinations and export quantities in July 2014 29
Table 6: Top ten Chinese lead ore/concentrate importers in July 2014 31
Table 7: Top 20 Chinese lead-acid battery export destinations in July 32