Shanghai, Nov. 7 (SMM)- Lead Concentrate
According to data from the China Nonferrous Metals Industry Association (CNIA), domestic lead concentrate output in September was 223,200 mt, up 12.1% MoM, while YTD output through September reached 1.62 million mt, up 20.68% YoY.
According to SMM survey concerning production at domestic mine operators in September, some miners cut or even halted production in late September due to low lead prices. As a result, SMM believes domestic output of lead concentrate in September should remain stable or fall slightly compared to August.
According to CNIA data, increases in lead concentrate output in September are mainly attributed to higher output in Inner Mongolia and Hunan provinces, two of China’s major lead concentrate production regions. Inner Mongolia produced 66,500 mt lead concentrate in September, an increase in output of 13.38% MoM, outstripping all other areas. Lead concentrate output in Hunan province was 32,400 mt in September, also up 16.78% MoM, only second to Inner Mongolia. However, results of the SMM survey differ from the above data, showing that output of larger mines in Inner Mongolia and Hunan province was stable, not growing, and that some small mines stopped production due to low lead prices. In this context, SMM believes lead concentrate output in these two areas should not show any significant increase in September. From other areas, such as Sichuan, Guangxi, and Yunnan provinces, results of the SMM survey are basically in line with CNIA data, with output in these areas stable in September.