Lead Market Report June 2015

Introduction 4
1. International Market Review 4
1.1 LME lead futures drop dramatically during June 4
2. Chinese market review 5
2.1 Chinese lead concentrate prices retreat in June 5
2.2 Weak sentiment on the Chinese lead ingot market during June 6
2.3 Secondary lead supply tight with the price falling slightly 7
2.4 Lead acid battery demand declines slightly in June 9
3. Production Data 11
3.1 World supply of refined lead metal exceeds demand by 4kt over Jan-Apr 2015 11
3.2 Lead production in China 12
3.2.Asian Metal Copyright1 China’s lead concentrate output up by 8.Asian Metal Copyright1 China’s lead concentrate output up by 8.52% MOM in May 2015 12
3.2.Asian Metal Copyright1 China’s automobile sales down by 0.Asian Metal Copyright2 China’s refined lead output up by 7.53% MOM in May 12
3.2.3 Chinese primary lead smelters’ operation rates recover in June 13
3.2.4 Secondary lead outputs from Chinese major smelters down by 20% MOM in June 14
3.2.Asian Metal Copyright1 China’s lead oreconcentrate imports up by 4.Asian Metal Copyright5 Chinese major smelters’ secondary lead stocks down by 4.8% MOM in late June 15
3.2.6 Lead ingot stocks at Chinese primary lead smelters up by 37% MOM late June 2015 16
4. Import and export data in China 17
4.1 Lead import and export data in China by country: 17
4.2 Analysis of lead import & export data 19
4.2.1 China’s lead ore/concentrate imports up by 4.73% MOM in May 2015 19
4.2.Asian Metal Copyright3 Secondary lead supply tight with the price falling slightly 7 2.Asian Metal Copyright2 China’s refined lead exports down by 24.53% MOM in May 2015 20
4.3 Top ten Chinese lead ore/concentrate importers in May 2015 21
4.4 China’s lead acid battery exports up by 8.69% MOM in May 21
4.5 Top ten Chinese lead-acid battery export destinations in May 22
5. Company News 23
5.1 Tongguan restarts its crude lead production in late May 23
5.2 Ruifeng Lead to complete technology reform in late August 23
5.3 Chihong’s Qujing lead smelter completes maintenance and plans to start operation in August 23
6. Related industry Developments 24
6.1 China’s automobile sales down by 0.40% YOY in May 2015 24
7．Market Outlook 24

Graph 1: The price graph of lead futures on the LME in June 2015 4
Graph 2: Lead ingot inventories in LME warehouses in June 2015 5
Graph 3: Lead concentrate 60%min prices on the Chinese spot market in Jun 2015 6
Graph 4 Lead ingot 99.994%min prices on the Chinese spot market in June 2015 7
Graph 5 Secondary Lead 98%min EX-VAT prices on Chinese market in Jun 2015 8
Graph 6 Secondary Lead 98%min prices on the Chinese spot market in Jun 2015 9
Graph 7 Processing charges for deep cycle lead battery polar plate in June 2015 10
Graph 8 Processing charges of start-type lead battery polar plate in June 2015 10
Graph 9 China’s major primary lead smelters’ average operation rate Jan 2014-Jun 2015 13
Graph 10 Average operation rates in lead smelters in Henan, Hunan and Yunnan Jan 2014-Jun 2015 14
Graph 11 China's secondary lead output statistics by month 15
Graph 12 China's secondary lead smelters' secondary lead inventory statistics by month 16
Graph 13 Lead ingot inventories held by the Chinese primary lead smelters Jan 2014-Jun 2015 17
Graph 14 China’s monthly lead ore/concentrate imports from January 2014 to May 2015 20
Graph 15 China’s refined lead exports during January 2014 and May 2015 20
Graph 16 China's lead acid battery export volume statistics by month 22
Graph 17 China's start-type lead acid battery export volume statistics by month 22

Table 1: World Refined Lead Supply and Usage 2010-2015 11
Table 2 Average operating rates for lead smelters in Henan, Hunan and Yunnan provinces. 14
Table 3 China’s lead import and export data in May 2015 19
Table 4 Top ten Chinese lead ore/concentrate importers in May 2015 21
Table 5 Top 10 Chinese lead-acid battery export destinations in May 23

.Asian Metal Copyright8% MOM in late June 15 3Asian Metal Copyright