Sharp Falls in LME Lead to Boost China Lead Conc. Imports; Easing Raw Material Shortage at Smelters-Shanghai Metals Market

Hot Keywords

  • Lithium hydroxide
  • Copper
  • Production data
  • 2019 South China Metals Summit
  • Inventory data
  • Zinc
  • Market commentary
  • Macroeconomics
  • LME WEEK 2019
  • Sales data
  • NPI
  • Aluminium
  • iron ore
  • Operation update
  • Futures movement

Sharp Falls in LME Lead to Boost China Lead Conc. Imports; Easing Raw Material Shortage at Smelters

Industry News 11:09:39AM Oct 17, 2014 Source:SMM

SHANGHAI, Oct. 17 (SMM) – Recent sharp declines in LME lead prices offered profitable opportunities for Chinese smelters that have suffered from raw material shortages to import lead concentrate, SMM learns.

Three-month lead on the London Metal Exchange has lost about $100 per tonne after China’s National Day holiday, down to $1,987 per tonne as of early Friday.

SMM’s estimates show the prevailing import prices for lead concentrate (Pb 60%) are around 12,100 yuan per tonne (silver content excluded) assuming the TC is $160 per tonne, on par with prices for Chinese concentrate. That, plus the $1.5 per ounce RC for silver, allows profits for Chinese smelter to import lead concentrate.

“Profit-driven smelters are planning to step up lead concentrate imports, and this will help ease lead concentrate shortage that has inhibited China’s lead production this year,” SMM analyst Zhu Rongrong said.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn. 

Sharp Falls in LME Lead to Boost China Lead Conc. Imports; Easing Raw Material Shortage at Smelters

Industry News 11:09:39AM Oct 17, 2014 Source:SMM

SHANGHAI, Oct. 17 (SMM) – Recent sharp declines in LME lead prices offered profitable opportunities for Chinese smelters that have suffered from raw material shortages to import lead concentrate, SMM learns.

Three-month lead on the London Metal Exchange has lost about $100 per tonne after China’s National Day holiday, down to $1,987 per tonne as of early Friday.

SMM’s estimates show the prevailing import prices for lead concentrate (Pb 60%) are around 12,100 yuan per tonne (silver content excluded) assuming the TC is $160 per tonne, on par with prices for Chinese concentrate. That, plus the $1.5 per ounce RC for silver, allows profits for Chinese smelter to import lead concentrate.

“Profit-driven smelters are planning to step up lead concentrate imports, and this will help ease lead concentrate shortage that has inhibited China’s lead production this year,” SMM analyst Zhu Rongrong said.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.