SMM Morning Review - 2010/3/16 Lead Market 

<p>SHANGHAI, Mar. 16 -- The latest monthly report released by the International Lead and Zinc Study Group (ILZSG) on Monday shows the global zinc supply surplus was 71,500 mt in January 2010.</p>
<p>Global consumption of refined zinc totaled 932,100 mt in January 2010, higher than 683,000 mt in January 2009.</p>
<p>Global output of refined zinc increased to 1.004 million mt in January 2010, also higher than 827 kt in January 2009.</p>
<p>The details are shown as below (unit: kt):</p>
<p>
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            <div><span style="font-size: 10pt">&nbsp;</span></div>
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            <div><span style="font-size: 10pt">January 2010</span></div>
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            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">December 2009</span></div>
            </td>
            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">January 2009</span></div>
            </td>
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            <td valign="top" width="196" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: windowtext 1pt solid; width: 147.35pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">Zinc ore output (zinc content)</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">986.6</span></div>
            </td>
            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">1,082.6</span></div>
            </td>
            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">801.0</span></div>
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            <div><span style="font-size: 10pt">Refined zinc output</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">1,003.6</span></div>
            </td>
            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">1,068.9</span></div>
            </td>
            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">827.0</span></div>
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            <td valign="top" width="196" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: windowtext 1pt solid; width: 147.35pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">Refined zinc consumption</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">932.1</span></div>
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            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">1,016.2</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">683.0</span></div>
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<p>
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            <td valign="top" width="244" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0cm; border-left: windowtext 1pt solid; width: 183.35pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div>&nbsp;</div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">January 2010</span></div>
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            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: windowtext 1pt solid; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">December 2009</span></div>
            </td>
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            <td valign="top" width="244" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: windowtext 1pt solid; width: 183.35pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">Commercial stocks (western countries)</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">946.4</span></div>
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            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">930.2</span></div>
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            <div><span style="font-size: 10pt">Stock/consumption ratio (weekly)</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">8.0</span></div>
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            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">8.1</span></div>
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            <div><span style="font-size: 10pt">The US stocks</span></div>
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            <td valign="top" width="108" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 81pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">7.7</span></div>
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            <td valign="top" width="120" style="border-right: windowtext 1pt solid; padding-right: 5.4pt; border-top: #ffffff; padding-left: 5.4pt; padding-bottom: 0cm; border-left: #ffffff; width: 90pt; padding-top: 0cm; border-bottom: windowtext 1pt solid; background-color: transparent">
            <div><span style="font-size: 10pt">7.7</span></div>
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<p><br />
In other news, the report also shows zinc inventories at smelters were 320 kt in January 2010, higher than 311 kt in December 2009.</p>
<p>The scope of statistics for commercial stocks includes western producers and consumers (including reporting and estimated data), traders and London Metal Exchange (LME).</p>
<p>(Edited by SMM)<br />
&nbsp;</p>