China’s Lead Conc. Imports Hold High in Oct. on Higher TCs, Improved Market Fundamentals

SHANGHAI, Nov. 27 (SMM) – China imported 176,600 tonnes of lead concentrate in October, holding high at the second highest this year, albeit a 13.01% drop from September, China Customs data indicate.

Lead concentrate supply in China has been tight this year, turning lead smelters to overseas market. The National Bureau of Statistics reported a 9.27% decline in China’s lead concentrate output in October, which aggravated concentrate shortages. Demand for the raw material started rising in September as some smelters built stocks for winter production.

Another driver behind the high import volumes was the rising  TCs for imported concentrate. TCs for imported lead concentrate (Pb 60%,  Ag < 1,000g) increased  from $150 per dry tonne to $155 in October, SMM data indicate.

Moreover, LME lead fell from $2,250 per tonne to less than $2,050 per tonne in October, helping SMM/LME lead price ratio increase to 6.75, whcih also lured Chinese importers into buying.

The US remained the top supplier of China's lead concentrate imports in October, claiming 45,800 tonnes. Imports from Australia surged 104% on the month to 42,700 tonnes.
 
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