SHANGHAI, Jun. 3 (SMM) – Here are the hot topics in China’s lead market during the past week.
China to Modify Entrance Requirements for Metals Industry to Tackle Overcapacity
China has seen more severe overcapacity during the past couple of years. Officials from the Ministry of Industry & Information Technology (MIIT) said May 29 that the entrance requirements for copper, lead and zinc industries may be modified for tackling overcapacity. Besides, the excess capacity in some emerging sectors, such as solar energy, hydropower, new materials, also received much attention.
China Lead Concentrate Imports Down 2.69%
According to China Customs, lead concentrate imports in China fell for a third consecutive month in April to 98,500 mt, down 2.69% from March. Imports through the first four months of 2013 were 445,000 mt, down 16.16% YoY.
Little Impact Likely from Elimination of Outdated Battery Capacity in Shandong
Nine lead-acid battery manufacturers in Shandong have been targeted under the elimination of outdated capacity program this year, representing some 2.05 million KVAH in polar plate and 1.668 million KVAH in battery assembly capacity. SMM research has found that many companies have already retired the targeted production lines and equipment out of energy efficiency considerations.
China Lead Exports Continued Rising in April
China Customs reported that China’s refined lead imports in April were 161 mt, nearly 40 times higher than the 4 mt recorded in March. YTD imports through April, however, fell 78.16% YoY to 437 mt.
China’s lead exports increased in April to 2,617 mt, up almost 30% MoM and rising for a fifth consecutive month, with lead plate exports especially strong. Although exports of lead plates were down in April due to a higher Shanghai/LME lead price ratio, the 2,768 mt exported was more than double the average volume last year.
China Refined Lead Output Down 6.18% in April
Data from the China Nonferrous Metals Industry Association show China’s refined lead output in April fell 6.18% MoM to 396,200 mt. YTD output through April totaled 1.46 million mt, also down 16.79% YoY.