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BEIJING (Asian Metal) 28 Jun 07 – With lead price further increase by RMB300/t (USD39/t) to RMB19,000/t (USD2,490/t) this Wednesday, sources expected that the metal will continue the upward trend in Chinese market in the following days, supported by the tight supply.
“Although 3-month lead dropped by USD130/t to USD2,580/t on LME this Tuesday, Chinese lead doesn’t follow the downward trend, but continues to surge up by RMB300/t (USD39/t) to above RMB19,000/t (USD2,490/t), as sellers insist on a high offer, expecting that the price may go up further in the short term, caused by the tight supply in China,” a lead producer in Hunan reported to Asian Metal. “We almost hold few materials to supply.”
The producer attributed tight lead supply to the shortage of lead concentrate and the strong demand from consumers. “The import volume of lead concentrate decreased in China from late May, caused by high lead price on LME, so most smelters reduced the output or even stopped the production, tightening the supply in the spot market,” said the source. “In addition, lead demand increases by 15% year by year, and it is not an exception this year.”
The smelter is expected to produce 100,000t of lead this year, down from 150,000-160,000t in 2006, due to the scarcity of lead concentrate.
The source disclosed that Chinese lead export was feasible this Wednesday, when the price was at above USD2,700/t on LME. “If lead price keeps rising on LME, and it is possible for Chinese producers to export the metal,” he said.
The producer is optimistic to the future market in China, saying: “It is easy for the metal to break RMB20,000/t (USD2,621/t) in the future, caused by the tight supply,” he said.
A consumer in Guangdong purchased lead at RMB18,700/t (USD2,451/t) ex works from Hunan on Wednesday. “Lead price keeps strong trend in China these days, and it is hard for us to get a large quantity of the materials now,” he said. “Some producers even quote RMB19,600/t (USD2,569/t) ex works for the metal, as they hold off the small quantity of the stockpile to wait for a higher price in the short term.”
The source said that they also raise the price of lead acid battery, but the increase is lower than that of lead. “We consume around 1,500t of the metal per month now, compared with 600-700tpm early this year,” he said.
The consumer expected that lead price may climb up further in Chinese spot market in the following days, influenced by the strong market on LME and the tight supply in China.
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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