[Pb] Any Positive Impact of Non-ferrous Metal Stimulus Plan on Lead Market Will be Limited

SHANGHAI, May 12 (CBI China) -- On May 11th, Central Government released the stimulus plan for non-ferrous metal industry, which will focus on output control, inefficient capacity elimination, technology innovation and restructuring, and promoting the industrial structure adjustment and upgrading. The Government will strive to eliminate inefficient lead-smelting capacity 600kt. However, the market remained quiet after the plan released.

    Actually, the Entry Requirements for the Lead Industry implemented in March 2007 has stipulated that the qualified producers can transform the existing capacity to over 50kt/yr (excluding 50kt) of uniserial lead smelting capacity through upgrading and eliminating the inefficient capacity and process. Hence, the part of inefficient capacity elimination in the stimulus plan has been implemented in the industry, so any positive impact on domestic lead supply and demand conditions will be limited.

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