SHANGHAI, Apr. 3 (SMM) – The National Bureau of Statistics (NBS) indicates China produced 232,100 mt of lead concentrate in the first two months of 2015, down by 11.45% on the year, SMM believes weak lead prices and stricter Environmental Protection Law were mainly behind the output fall.
SMM #1 refined lead prices averaged RMB 12,536.25/mt and RMB 12,518.3/mt, respectively, in January and February, the lowest since May 2009.
The implementation of the new Environmental Protection Law affected mining operations, and a number of mines in Sichuan and Fujian failing to comply with the Law were forced to close.
Lead concentrate production in Hunan increased 20.42% YoY to 65,100 mt in the first two months, while that in Yunnan grew 7.28% to 22,900 mt. Henan posted a 38.13% output growth to 14,600 mt.
Sichuan’s lead concentrate output tumbled 60.1% to 17,900 mt, and that in Fujian slumped 63.24% to 6,300 mt. Gansu saw its concentrate output down 20.71% to 6,800 mt.
In Inner Mongolia, lead concentrate output was 41,000 mt. Output was 8,500 mt in Guangdong, 19,400 mt in Guangxi, and 6,800 mt in Shaanxi.
Heading into March, Chinese mines were resuming from the Chinese New Year holiday, but pressure from environmental protection clampdowns remained large. Thus, the growth in lead concentrate production should be limited.