Hebei Smelter Inspections Spark Wider Concerns

SHANGHAI, Sept. 30 -- Newly launched environmental inspections at producers of lead and other metals in China's Hebei province have sparked fears that more restrictions may follow.

    The inspections, which will last till October 25, are not expected to have a huge impact on lead prices as Hebei is not a major producer, but market participants are worried that they may signal more and stricter inspections and regulations on metals production elsewhere.

    The provincial environment protection bureau stressed that any heavy metal producers in Hebei, such as of lead, mercury, cadmium and chromium, will be shut down if found to be below environmental standards.

    No further details were available.

    "Hebei is not a major province for lead, so it won't negative effect capacity," agreed an analyst from an investment company in Shanghai.

    Hebei did not produce any refined lead in August, producing just 333 mt of lead concentrates, out of China's total output of 124,500 mt.

    "But my concerns are that the Chinese government may come out with stricter rules on Chinese lead and other heavy metals producers after the national day holiday in October," said an analyst in Beijing.

    China enters a week-long break starting October 1.

    Market players said the move indicated the Chinese government's resolution to guarantee a safer environment.

    (Source: Metal Bulletin)