China Refined Lead Exports Spike to 2,295 mt in September 2013

SHANGHAI, Sept. 31 (SMM) –  

Lead Concentrate
According to data from China’s Customs, China’s lead concentrate imports reached 132,000 mt in September, down 9.53% MoM, but are still considered high even though import volumes were less than those in July and August. YTD imports through September totaled 1.05 million mt, down 20.35% YoY.

The high import volume in September is due to two factors. First, the average operating rate at lead smelters surged to 61.83% in September, up from August’s 56.53%. The rise was the result of many smelters restarting production after intensive maintenance during July and August, which pushed up demand for lead concentrates. Second, lead mining enterprises in Inner Mongolia, Qinghai, Tibet provinces began closing down due to colder weather. As a result, smelters were forced to increase imports of lead concentrates to ensure normal production.

The top three suppliers to China during September were the US, Russia and North Korea, accounting for around 50% of China’s total lead concentrate imports during the month. A surge of around 40,000 mt of lead concentrates per month from the US arrived at Chinese ports during August and September, compared to the 15,000 mt per month from Russia. SMM sources report that steady deliveries of Russian lead concentrate may be due to long-term contracts between Chinese smelters and Russian lead mining enterprises, but most lead concentrates from Russia were consumed in Inner Mongolia and Henan provinces. China also imported a large volume of lead concentrates from North Korea, which were mainly purchased by trading companies located in the border regions between North Korea and northeast China, but are rarely found in markets.

Refined Lead
Data from China’s Customs reveals China’s refined lead imports were only 5 mt in September, down 95.87% from August’ s 121 mt. YTD imports through September fell by 88.69% YoY to 659 mt. During August, the Shanghai/LME lead price ratio averaged around 6.6, unfavorable for refined lead imports, while domestic refined lead supply exceeded demand. As a result, refined lead imports during September were sluggish and with all goods coming from Japan.

China’s refined lead exports rose in September by 53.61% MoM to 2,295 mt, while YTD exports through September surged by over ten times YoY to 14,300 mt. Thailand and Indonesia received almost 98% of China’s total refined lead exports during September. Exports of lead ingot were mostly concentrated in the Chenzhou Export Processing Zone, which allows qualified enterprises to export by processing on order since the Shanghai/LME lead prices ratio was still not favorable for general exports.