China's Lead Conc. Imports Rise to 6-month High in July on Tight Domestic Supplies

SHANGHAI, Aug. 28 (SMM) – China’s imports of lead concentrates rose to a 6-month high in July as shipments booked in May and June arrived and are expected to continue so this month.

Inbound shipments of lead concentrates were 134,000 tonnes last month, 39.2% higher from June and the highest level since January, customs data showed.

Among them, 30,000 tonnes came from Australia, 21,000 tonnes from Russia and 14,000 tonnes from Peru, according to the data.

Still, imports in the first seven months fell 15.5% from a year ago to 774,900 tonnes due to negative arbitrage so far this year.

Slump in lead prices on London Metal Exchange in May and June narrowed the arbitrage loss, inducing Chinese lead smelters to import overseas concentrates as domestic supplies remained tight.

Smelters ``are expected to turn back to’’ domestic material as recent rallies in lead and silver prices would improve domestic supplies, Zhu Rongrong, SMM’s lead analyst said.