Lead Market Report December 2012

Catalog
Introduction 4
1. Financial News Overview 5
1.1 International financial overview 5
1.1.1 Global crude oil future rebounds in December 5
1.1.2 European debt crisis turns the corner US financial crisis drags down US dollar index 5
1.2 Chinese Financial New Overview 6
1.2.Asian Metal Copyright2 Chinese lead ingot prices stable and dull in December 14 3.Asian Metal Copyright1 China’s November CPI up 2.Asian Metal Copyright3 Secondary lead prices recover from the bottom level in December 15 3.Asian Metal Copyright0% YOY, PPI down 2.2% YOY 6
1.2.2 China’s PMI in December keeps stable 7
2. International Lead Market Review 8
2.1 Lead futures climbed up strongly on the LME in December 8
2.2 US spent lead acid battery prices inch-up 9
2.3 US secondary lead premiums remain elevated 10
2.4 Canadian spent lead acid battery prices hold firm 10
2.5 Hefty premiums reported for Canadian secondary lead 10
2.6 Mexican lead acid battery supplies continue to dwindle 11
2.7 Mexican secondary lead premiums begin to rise 11
2.8 Mexican lead concentrate market holds firm 11
2.9 Bolivian lead concentrate suppliers assess the domestic market 12
2.10 Peru looks to become important supplier of lead metal 12
2.11 Slight decline for Peruvian lead acid batteries 13
3. Chinese lead market review 13
3.1 Chinese lead concentrate market stable in December 13
3.2 Chinese lead ingot prices stable and dull in December 14
3.3 Secondary lead prices recover from the bottom level in December 15
3.4 Recycled lead battery turnovers actively 18
3.5 The operation rate of lead acid battery factories is in a low level 19
4. Production Data 21
4.1 ILZSG: 67kt of refined lead surplus in global lead market in Jan-Oct 2012 21
4.2 Lead production in China 22
4.2.1 China’s lead concentrate production grows fast in 2012 and may grow further in coming five years 22
4.2.Asian Metal Copyright3 Operation rate of Chinese major lead smelters declines in December 2012 on sluggish lead market 25 4.Asian Metal Copyright2 China’s lead ingot production in November up by 10.4% YOY 24
4.3 Operation rate of Chinese major lead smelters declines in December 2012 on sluggish lead market 25
4.4 The operation rate of major secondary lead smelters in China in December 26
5. Lead import and export data in China 27
5.1 Lead import and export data in China by country: 27
5.2 Analysis on lead import & export data 29
5.2.1 China’s refined lead import and export market remains dull in November 2012 29
5.2.2 China’s lead ore/concentrate import up by 30.Asian Metal Copyright Market Outlook 35 Graph 1: Crude oil prices in US in December 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 December 9 Graph 6：Lead ingot inventory in the warehouses of LME in December 9 Graph 7: Lead concentrate 60%min prices in the Chinese spot market in December 2012 14 Graph 8: Lead ingot 99.Asian Metal Copyright5% YOY but down by 10.96% MOM in November 2012 30
5.3 Top ten Chinese lead ore/concentrate importers November 2012 31
5.4 China’s lead acid battery export declines in November 31
6. Company News 33
6.1 Rongda Mining’s lead-zinc mine halts production on cold weather 33
6.2 MMG seeks funds for new zinc mine 34
6.3 Chifeng Yubang Mining starts operation 34
7．Related Industry Development 34
7.1 China automobile sales volume increased by 8.2% YOY in November 2012 34
8. Market Outlook 35



Graph 1: Crude oil prices in US in December 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 December 9
Graph 6：Lead ingot inventory in the warehouses of LME in December 9
Graph 7: Lead concentrate 60%min prices in the Chinese spot market in December 2012 14
Graph 8: Lead ingot 99.994%min prices in the Chinese spot market in December 2012 15
Graph 9: Secondary Lead ingot 98%min EX-VAT prices in the Chinese spot market in December 2012 16
Graph 10: Secondary lead ingot 98%min prices in the Chinese spot market in December 2012 17
Graph 11: Secondary lead ingot 99.97%min EX-VAT prices in the Chinese spot market in December 2012 17
Graph 12: Secondary Lead ingot 99.97%min EX-VAT prices in the Chinese spot market in December 2012 18
Graph 13: Recycled start-type battery EX-VAT prices in the Chinese spot market in December 2012 19
Graph 14: Recycled deep cycle battery EX-VAT prices in the Chinese spot market in December 2012 19
Graph 15：The processing charge of start-type lead battery polar plate in Chinese spot market in December 20
Graph 16：The processing charge of deep cycle lead battery polar plate in Chinese spot market in December 21
Graph 17: World Refined Lead Supply and Usage 2007 - 2012 22
Graph 18: China lead concentrate production by province Jan-Nov 2012 23
Graph 19: Operation rate for the major secondary lead smelters in China in December 27
Graph 20: China’s lead import and export data in November 2012 29
Graph 21: Top ten Chinese lead ore/concentrate importers November 2012 31
Graph 22: China lead acid battery output monthly cartogram in 2011-2012 32
Graph 23: Average export price of Chinese lead acid battery 33

Introduction
The performances of lead market on the LME and in Chinese market were totally different in December. The lead futures strengthening continuously on the LME and touched the highest level in 2012 while the Chinese lead ingot prices continued to linger at the relatively lowest level with sluggish demand from consumers. The lead ingot market appeared flat and the prices fluctuated narrowly in the range of RMB14,600-14,800/t in the Chinese spot market.