2010 March Pb Output Data Analysis

SHANGHAI, May 4 (SMM) --

Concentrate
According to the China Non-ferrous Metals Industry Association (CNIA), China's output of lead concentrate was 127 kt in March, up 72.8% MoM.  YTD output was 298 kt, up 68.14% YoY.  The higher output was due largely to production resumption at facilities previously restricted by seasonal factors.  The domestic/LME lead price ratio remains unfavorable for imports, helping increase purchasing of domestic goods, stimulating domestic lead concentrate production as a result.  In this context, China's lead concentrate output experienced increases both on a monthly and yearly basis.

Refined Lead
According to CNIA, China's output of refined lead was 300 kt in March, up 29.6% MoM.  YTD output was at 838 kt, up 13.59% YoY.  China's March lead output included 196 kt of primary lead, which was in line with SMM's survey in March.  Output in Inner Mongolia increased to 8,601 mt in March due to the commission of new capacity.  SMM believes lead output in that region will grow in the future in view of local resource advantages.  Lead production in the traditional production regions of Hunan and Henan provinces remains stable.

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