Traders active in piling up lead concentrate in Chinese market
2013-11-12 10:13:29 [Print]
BEIJING (Asian Metal) 12 Nov 13 – As lead concentrate is still in short supply in Chinese market, most lead smelters are active in purchasing the material. In view of strong demand from smelters, most traders are also active in piling up lead concentrate to wait for higher prices at the end of year.
A source from a Hunan-based trading company reported that the lead concentrate supply is still very tight in Chinese market, due to the decline of lead concentrate production and import volume. “Many traders are active in purchasing the material to build lead concentrate to wait for the recovery of lead and silver prices,” said the source.
The source said that they hold about 1,000t of lead concentrate on hand and are not in a hurry to sell the material. “The lead concentrate 60%min with about 2,000g of silver prices are about RMB12,400-12,450/metal ton (USD2,032-2,041/metal ton) for lead, down by about RMB100/metal ton compared with the prices in early November,” said the source. “If the silver grade is about 1,000g/t, the lead concentrate prices are about RMB12,300-12,350/metal ton (USD2,016-2,025/metal ton) in the Hunan spot market.”
The source said that with lead smelting capacity expanding rapidly in Hunan, the demand for lead concentrate is very strong in the local market. “Meanwhile, many Henan-based lead smelters also purchased the material in Hunan province, leading to the great tightness of lead concentrate supply in local market,” said the source. “Some lead mines may halt production in northern area of China on cold weather, so more lead producers will come to the southern market.”
A source from another Hunan-based trading company reported that as the lead concentrate supply is very tight, they are active in seeking for the material. “Many lead smelters hold very low inventory of lead concentrate and some new lead smelters may start operation in late 2013, so the demand for lead concentrate will remain very strong,” said the source.
The trader put the prevailing prices of lead concentrate 60%min at about RMB12,200-12,300/metal ton (USD2,000-2,016/metal ton) in the local spot market, down by about RMB100/metal ton (USD16/metal ton) compared with the prices last week, due to the retreat of lead ingot prices.
The source predicted that the lead futures may remain very strong on the LME and the ratio of Chinese lead ingot prices against that on the LME will remain low, so the lead concentrate import volume may remain at low level in the near term. Therefore, the tightness of lead concentrate may not ease greatly in the near term.
Lead Conc. TC 50%min CIF China
Unit:USD/mt
China lead concentrate producers' output statistics by province by month
Unit:
