China Steel Export Edges up on Shrinking Price Difference

SHANGHAI, May 21 (CBI China) -- A recent CBI survey of 25 major domestic primary lead smelters (total capacity: 2.41 million mt/yr) revealed the following insights:
&nbsp;&nbsp;&nbsp; 1) Operating Rates
&nbsp;&nbsp;&nbsp; Domestic lead prices surged twice during the first half of April, but failed to break the important RMB 13,000/mt level, but was able to gain support at RMB 12,000/mt by the end of the month.&nbsp; Prices failed to generate any strong production interests at medium and small primary lead smelters.&nbsp; In addition, a small number of medium-size smelters shut down for maintenance for about 10 days due to tight raw material supplies and high lead concentrate prices, slightly affecting output of&nbsp; refined lead.&nbsp; 
&nbsp;&nbsp;&nbsp; 2) TC/RC of Lead Concentrate
&nbsp;&nbsp;&nbsp; Buyers were still in a stronger position in lead concentrate markets during April. TC/RC of domestic lead concentrate (55-60%) was in the RMB 2,500-2,800/mt range, and TC/RC of imported high-silver lead concentrate rose to USD 40-50/mt, from USD 30/mt in the second half of March.
&nbsp;&nbsp;&nbsp; 3) Consumption Forecast
&nbsp;&nbsp;&nbsp; Buying interest from lead-acid storage battery producers experienced significant declines in the second half of April.&nbsp; Daily trading volumes were down in major markets, leading to a pessimistic outlook from a small number of smelters.&nbsp; However, LME lead prices have been strong due to positive economic news, as well as improving financial and commodity markets.&nbsp; These higher prices will put more pressure on lead concentrate imports, but should lift the sentiment of most smelters.
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