Lead Market Report March 2014

Introduction 2
1.Financial News Overview 3
1.1 International financial news overview 3
1.1.1 Crude oil futures price dropped sharply in March 3
1.1.2 US dollar index fails to rebound 3
1.2 Chinese Financial News Overview 4
1.2.Asian Metal Copyright2.Asian Metal Copyright1 CPI up by 2.Asian Metal Copyright1.Asian Metal Copyright0% YOY, PPI down by 2.0% YOY in February 4
1.2.2 PMI rebounds slightly in March 5
2. International Market Review 6
2.1 Lead futures drop significantly on the LME in March 6
3. Chinese market review 7
3.1 Chinese lead concentrate market warms up in March 7
3.2 Chinese lead ingot market quiet during March 8
3.3 Secondary lead prices decrease sharply in March 9
3.4 Recycled lead battery prices accelerate on a decline in March 11
3.5 Lead acid battery demand decreases slowly 13
4．Production Data 14
4.1 Global market for refined lead in deficit by 31kt in January 2014 14
4.2 Lead production in China 15
4.2.Asian Metal Copyright2 Lead production in China 15 4.Asian Metal Copyright1 Chinese primary lead smelters’ operation rate recovers to 57.69% in March 2014 15
4.2.2 Secondary lead output of largest smelters up by 72% MOM in March 16
4.2.Asian Metal Copyright4 Recycled lead battery prices accelerate on a decline in March 11 3.Asian Metal Copyright3 Lead ingot stocks in Chinese primary lead smelters up by 19.54% MOM in late March 2014 17
4.2.4 Recycled lead battery inventory of largest secondary lead smelters up by 38% MOM at the end of March 18
4.2.5 Secondary lead inventory of largest smelters up by 86% MOM at the end of March 19
5. Import and export data in China 19
5.1 Lead import and export data in China by country: 19
5.2 Analysis on lead import & export data 21
5.2.1 China’s lead ore/concentrate imports down by 41.32% MOM in February 2014 21
5.2.Asian Metal Copyright2.Asian Metal Copyright2 China’s refined lead exports up by 136.93% MOM in February 2014 22
5.3 Top ten Chinese lead ore/concentrate importers in February 2014 23
5.4 China’s lead acid battery exports down by 58% MOM in February 23
6．Company News 24
6.1 Mengzi Mining and Smelting’s new lead smelter starts production in early March 24
6.2 Xinling Lead resumes production in mid-March 24
6.3 Xinjiang Hengchang’s lead smelter resumes production in mid-March 25
6.4 Yuguang Gold & Lead cut lead ingot production in late March 25
7．Related industry Developments 25
7.1 China automobile sales volume for February drop significantly 25
8．Market Outlook 25

Graph 1: Futures prices of crude oil in US 4
Graph 2: USD index chart 5
Graph 3: Chinese CPI and PPI trend 2012-2014 6
Graph 4: China’s PMI index in 2013-2014 6
Graph 5: The price graph of lead futures on the LME in March 2014 7
Graph 6: Lead ingot inventories in warehouses of LME in March 2014 7
Graph 7: Lead concentrate 60%min prices on the Chinese spot market in March 2014 8
Graph 8: Lead ingot 99.994%min prices on the Chinese spot market in March 2014 10
Graph 9: Secondary Lead 98%min EX-VAT prices on Chinese market in March 2014 11
Graph 10: Secondary Lead 98%min prices on the Chinese spot market in March 2014 11
Graph 11: Secondary Lead 99.97%min EX-VAT prices on the Chinese spot market in March 2014 12
Graph 12: Secondary Lead 99.97%min prices on the Chinese spot market in March 2014 12
Graph 13: Recycled start-type lead battery EX-VAT prices on the Chinese spot market in March 2014 13
Graph 14: Recycled deep cycle lead battery EX-VAT prices on the Chinese spot market in March 2014 14
Graph 15: Processing charges for deep cycle lead battery polar plate in March 2014 15
Graph 16: Processing charges of start-type lead battery polar plate in March 2014 15
Graph 17: Chinese Primary lead smelters’ lead ingot production and operation rates Feb 2013-Feb 2014 16
Graph 18: Operation rates of lead smelters in Henan, Hunan and Yunnan in March 2014 17
Graph 19: Output of large secondary lead smelters by region in March 2014 18
Graph 20: Recycled lead battery stocks of largest secondary lead smelters 19
Graph 21: Secondary lead inventory of largest smelters by the end of February and March 20
Graph 22: China’s Lead Concentrate Imports Jan 2013-Feb 2014 22
Graph 23: China refined lead exports Jan 2013-Feb 2014 23
Graph 24: China’s lead acid battery exports in 2013-2014 25

Table 1: World Refined Lead Supply and Usage 2009-2014 16
Table 2: Lead ingot stocks in Henan, Hunan and Yunnan provinces in late March 2014 18
Table 3: China’s lead import and export data in February 2014 22
Table 4: China’s refined lead export destinations and export quantities in February 2014 23
Table 5: Top ten Chinese lead ore/concentrate importers in February 2014 24

.Asian Metal Copyright1 China’s lead oreconcentrate imports down by 41Asian Metal Copyright