Lead supply tight in China

15 Jun 07 – Due to the extreme shortage of lead concentrate, many lead producers reduced or halted the production recently, tightening lead supply in Chinese spot market.

“We sold lead at RMB16,800-16,900/t (USD2,202-2,215/t) ex works to our regular consumers in Shandong and Hebei, compared with RMB16,950-17,000/t (USD2,221-2,228/t) in the local market,” said a smelter with the monthly output of 7,000t in Henan. “We have few materials to supply now.”

According to the source, many smelters already reduced the production, caused by the tightness of lead concentrate. “Some sellers hold off the metal, expecting a higher price in the short term, as they find it hard for them to get lead concentrate,” he said. “Lead supply is very tight in the market.”

The smelter purchases lead concentrate in Sichuan, Qinghai and Tibet. “Producers compete for the raw materials, caused by the import decrease from June,” added the source. “The treatment charge is at RMB2,000-2,500/t (USD262-328/t) for lead concentrate 65%min in the market, compared with RMB2,500-3,000/t (USD328-393/t) before June.”

Another trader in Zhejiang said that they have few stockpiles of lead. “We usually purchase lead from Zhuzhou Smelter in Hunan, who quoted RMB17,200-17,300/t (USD2,254-2,267/t) ex works on Thursday, up by RMB100/t (USD13/t) compared with that on the previous day,” said the source.

The trader said that they will purchase the metal from Zhuzhou Smelter, if consumers can bid RMB17,650/t (USD2,313/t). “The supply is very tight, and some traders offer a high price, expecting that lead price may climb up further in the following days, supported by the robust market of lead concentrate,” he reported.





Sam Xu
Sales Engineer

DONGGUAN JIEFU FLAME-RETARDED MATERIALS CO.,LTD
Address: jiefu industrial park shuiping industrail district dalang town dongguan GD,P.R.C
Zip: 528770
Tel: 0086-755-83474911
FAX: 0086-755-83474980
Mobile:13929211059
Contact me: xubiao_1996@hotmail.com samjiefu@gmail.com

Jiefu Chemical industry LTD . (Our imports and exports company )

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