[Pb Ore]Chinese Lead Concentrate Output Surges over 25% MoM in May, 2015

SHANGHAI, Jun. 24 (SMM) – Chinese May’s lead concentrate output totals 266,000 tonnes, up more than 25.42% MoM and 8.52% versus May 2014, latest data from China's National Statistic Bureau show.

Most mines in north and frigid regions recovered production in May. Concentrate output in Inner Mongolia rose 42,000 MoM to 143,000 tonnes.

The growth in lead and silver prices also stimulated ore suppliers’ producing interest. SMM #1 lead prices averaged 13,686.25 yuan per tonne in May, up 494.58 yuan per tonne MoM. SMM #2 silver prices averaged 3,576.25 yuan/kg in May, rising 90 yuan/kg from April.

By regions, the production in Sichuan climbed 13,000 MoM to 18,000 tonnes mainly because some mines resumed operation from environmental protection inspection. Hunan’s output increased 4,000 MoM to 31,000 tonnes with local large mines keeping normal production. The output was up 8,000 from April  to 9,000 tonnes in Shaanxi while Yunnan, Guangxi, Gansu and Qinghai saw modest growth.

Jiangxi saw a decline of 6,000 MoM to 3,000 tonnes but the production grew 7,000 to 9,000 in April. Concentrate output fell to 9,000 tonnes and 4,000 tonnes in Henan and Tibet, respectively, by 1,000 tonnes and 2,000 tonnes each MoM. But those declines were limited as a whole.

Ore suppliers show high producing interest in June due to favorable climate. Thus, domestic lead concentrate production should increase slightly in June.

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