Lead Market Report October 2012

Highlights


◆ US lead acid battery supplies improve

◆ US secondary lead prices drop

◆ Strong interest noted for Bolivian lead concentrate

◆ Increased spot activity noted for Peruvian lead concentrate

◆ Operation rate of Chinese major lead smelters in October touches the highest level in 2012

◆ The operating rates of the biggest secondary lead smelters in China in October

◆ Chinese lead concentrate market quiets down with prices retreating in October

◆ Top ten Chinese lead ore/concentrate importers September 2012

◆ China's lead acid battery export continues decreasing month on month in September
Catalog
Introduction 4
1. Financial News Overview 5
1.1 International financial overview 5
1.1.1 Global crude oil future keeps dropping in October 5
1.1.2 European economy remains depressed while US dollar index rebounds in October 5
1.2 Chinese Financial New Overview 6
1.2.Asian Metal Copyright1 China’s CPI up by 1.Asian Metal Copyright1 China’s CPI up by 1.Asian Metal Copyright5 Deep cycle lead acid battery market goes into off-season 17 4.Asian Metal Copyright9% YOY and PPI down by 3.6% YOY in September 6
1.2.2 Chinese PMI picks up in October 7
2. International Lead Market Review 8
2.1 Lead futures retreat on the LME on stronger US Dollar and gloomy economic outlook 8
2.2 US lead acid battery supplies improve 9
2.3 US secondary lead prices drop 10
2.4 Canadian lead premium retreats in October 10
2.5 Mexican secondary lead prices drop 10
2.6 Mexican lead concentrate market strong 10
2.7 Strong interest noted for Bolivian lead concentrate 11
2.8 Increased spot activity noted for Peruvian lead concentrate 11
3. Chinese lead market review 11
3.1 Chinese lead concentrate market quiets down with prices retreating in October 11
3.2 Chinese lead ingot prices kept softening in October 12
3.3 Secondary lead price went slowly as stock increases 14
3.4 Recycled lead battery market trading quiet 16
3.5 Deep cycle lead acid battery market goes into off-season 17
4. Production Data 19
4.1 Lead Markets In Surplus Of 80KT in Jan-Aug 2012: ILZSG 19
4.2 Lead production in China 20
4.2.1 China lead concentrate production declines by 8% MOM in September 2012 20
4.2.Asian Metal Copyright3 Operation rate of Chinese major lead smelters in October touches the highest level in 2012 21 4.Asian Metal Copyright2 China’s lead ingot production grows by 17.9% YOY in September 2012 20
4.3 Operation rate of Chinese major lead smelters in October touches the highest level in 2012 21
4.4 The operating rates of major secondary lead smelters in China in October 22
5. Lead import and export data in China 23
5.1 Lead import and export data in China by country: 23
5.2 Analysis on lead import & export data 25
5.2.Asian Metal Copyright1 China’s CPI up by 1.Asian Metal Copyright1 China’s refined lead import up by 11.33 % YOY in September 2012 25
5.2.Asian Metal Copyright2 Lead production in China 20 4.Asian Metal Copyright2 China’s lead concentrate import in September down by 10.82% MOM 26
5.3 Top ten Chinese lead ore/concentrate importers September 2012 27
5.4 China lead ore/concentrate import data by company in September 2012 27
XIAMEN SHARING HUARONG IMP./EXP.Asian Metal Copyright2 US lead acid battery supplies improve 9 2.Asian Metal CopyrightTRADE CO.Asian Metal Copyright1 China’s refined lead import up by 11.Asian Metal Copyright, LTD. 30
5.5 China’s lead acid battery export rebounds in September 34
6. Company News 35
6.1 Huludao Zinc’s lead smelter resumes production in October 35
6.2 Yuyuan’s lead smelter resumes production in October 36
6.3 Xinjiang Qianxin Mining halts production for maintenance in late October 36
6.4 BHP Billiton lead concentrate production in Q3 down by 6.5% YOY 37
7．Related Industry Development 37
7.1 China automobile production and sales volume in September 2012 37
8. Market Outlook 37



Graph 1: Crude oil prices in US in October 2012 5
Graph 2: USD index chart 6
Graph 3: Chinese CPI and PPI chart during 2011-2012 7
Graph 4: Chinese PMI chart during 2011-2012 8
Graph 5：The price graph of lead futures on the LME in October 9
Graph 6：Lead ingot inventory in the warehouses of LME in October 9
Graph 7: Lead concentrate 60%min prices in the Chinese spot market in October 2012 12
Graph 8: Lead ingot 99.994%min prices in the Chinese spot market in October 2012 13
Graph 9: Secondary Lead ingot 98%min EX-VAT prices in the Chinese spot market in October 2012 14
Graph 10: Secondary lead ingot 98%min prices in the Chinese spot market in October 2012 15
Graph 11: Secondary lead ingot 99.97%min EX-VAT prices in the Chinese spot market in October 2012 15
Graph 12: Secondary Lead ingot 99.97%min EX-VAT prices in the Chinese spot market in October 2012 16
Graph 13: Recycled start-type battery EX-VAT prices in the Chinese spot market in October 2012 17
Graph 14: Recycled deep cycle battery EX-VAT prices in the Chinese spot market in October 2012 17
Graph 15：The processing charge of start-type lead battery polar plate in Chinese spot market in October 18
Graph 16：The processing charge of deep cycle lead battery polar plate in Chinese spot market in October 19
Graph 17: World Refined Lead Supply and Usage 2007 - 2012 20
Graph 18: Operation rate for the major secondary lead smelters in China in October 23
Graph 19: Graph 20: China’s lead import and export data in September 2012 25
Graph 21：China lead ore/concentrate import data by company in September 2012 34
Graph 22: China lead acid battery output monthly cartogram in 2011-2012 34
Graph 23: Average export price of Chinese lead acid battery 35

.Asian Metal Copyright6% YOY in September 6 1Asian Metal Copyright