China Lead Concentrate Output Down to 221,000 mt in August

SHANGHAI, Oct. 10 (SMM) – China’s lead concentrate production came in at 221,000 mt in August, down 7.08 percentage points YoY and 1.41 percentage points MoM, China National Bureau of Statistics data revealed.

Domestic lead concentrate production totaled 1.61 million mt during January-August, slipping 5.58 percentage points from a year ago.

In August, lead and silver prices stabilized in China. But domestic lead concentrate output still fell for three consecutive months mainly as the large drop in zinc prices depressed mines’ producing interest, SMM explained. SMM #1 zinc prices averaged RMB 14,847.1/mt in August, down RMB 423.3/mt from July’s.

Dongshengmiao Mining Industry and Wulatehou Banner Zijin Mining Industry in Inner Mongolia put expanded capacity online in August. But zinc concentrate was the main product at the two companies, with lead concentrate output only claiming 13% of zinc concentrate production at Dongshengmiao and 12.5% at Zijin. Hence, the online of expanded capacity did not lead to a large rise in lead concentrate production.

Lead concentrate production in China declined 3,000 mt MoM in August. By region, concentrate production dropped 6,000 mt MoM to 24,000 mt in Hunan. Large mines there maintained stable operation, growing production slightly. But parts of small mines kept low operating rate in Hunan’s Huayuan County due to low zinc prices and permit expiration. The production decreased 2,000 mt to 7,000 mt in Shaanxi and slipped 1,000 mt to 8,000 mt in Sichuan, both on a monthly basis.

Inner Mongolia saw concentrate production up 5,000 MoM to 109,000 mt in August. Operation at local large mines stayed well and Dongshengmiao Mining Industry and Zijin Mining’s mines in Urat Rear Banner put expanded capacity online, increasing production there. Concentrate production grew 1,000 MoM to 8,000 mt in Gansu with production basically unchanged in other regions.