China Lead Output Rises in Oct Despite Smelter Closures

SHANGHAI, Nov. 12 -- China's lead output gained 1% or 4,000 mt from September to 346,000 mt in October on rising treatment charges (TCs).

    The figure was also 7.9% higher year-on-year, according to the national bureau of statistics.

    October's output may have been higher except that significant smelter capacities were still suspended in Henan province in the aftermath of child poisoning cases.

    "Losses from Henan Province were offset by rising operation rates at smelters in other provinces," said an analyst in Shanghai.

    "However, the October output is still about 20,000 mt lower than the highs this year," she noted.

    "Henan Yuguang Gold & Lead, the biggest lead smelter in China, still has part of its capacity shut down," she added.

    Spot lead TCs were quoted at USD 100-110/mt this week, from USD 70/mt a few months ago, said industry sources.

    This, along with better access to lead concentrate, has encouraged better lead smelter operating rates, said another analyst.

    For January-October, China's lead output remained 19% higher year-on-year at 3.16 million mt, according to the bureau.

    For zinc, output fell 1% or 5,000 mt from September to 405,000 mt, up 9.8% year-on-year, taking the ten-month total to 3.52 million mt, up 5.8% year-on-year.

    (Source: Metal Bulletin)