China’s 2014 Lead Concentrate Output Set for First Drop in 10 Years

SHANGHAI, Jan. 7 (SMM) – China produced 2.71 million tonnes of lead concentrate (Pb content) January-November 2014, down 7.74% year-on-year, presaging a decline in the full-year production which was not seen since 2005.

Depressed price was a major drag on China’s lead concentrate production during the year past, SMM believed.

The average SMM #1 lead price fell to 13,825.4 yuan per tonne in 2014, 352.75 yuan lower than 2013. Moreover, silver prices also posted marked falls, with the average SMM #2 silver price off by 768.2 yuan per tonne, or 16%, to 3,999.4 yuan per kilogram.

Rigorous scrutiny which resulted in massive stoppages was another obstacle to output growth of the raw material. Lead concentrate output in Guangxi dropped 41% in the first eleven months of 2014 as stringent environmental protection inspections forced local mines to close. Besides, most mines in Honghe Prefecture, Yunnan, reported little output through 2014 against production safety inspections.

SMM also learned that some mines suspended production for equipment upgrades ahead of the implementation of the new Production Safety Law and Environmental Protection Law.

A longer period of low temperatures early in 2014 that caused north China mines to put off reopening schedules was also blamed for the negative growth.

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