Lead Industry Analysis in 2011 Lead Industry Development Status

From lead-acid batteries for daily driving to nuclear magnets for medical treatment, lead has become an industrial product that we often come into contact with in our daily lives. In recent years, people's awareness of environmental protection has been continuously strengthened, and lead pollution has attracted widespread attention in the non-ferrous metal industry, which has affected the supply of lead to some extent. Although the supply of lead is not as stable as that of copper, aluminum and zinc, as the fourth largest non-ferrous metal in China, lead production and sales have ranked first in the world for many years in a row.

1. Steady increase in product output According to statistics from the Non-Ferrous Metals Industry Association, domestic lead production in 2010 was 4.199.4 million tons, a year-on-year increase of 13.25%, and the growth rate was 2.4% lower than in 2009. Lead and zinc, as associated metals, have always received attention from the industry at the same time. In 2010, the total domestic lead and zinc output was about 9.4 million tons, accounting for 30% of the country's major ten non-ferrous metals. China's lead production accounts for 44.66% of the world's total output, ranking 18th in the world for 18 consecutive years. Lead consumption is about 3.95 million tons, accounting for 44% of the world's total consumption. It ranks first in the world for 10 consecutive years.

According to statistics from the China Non-Ferrous Metals Industry Association, China produced 2.836 million tons of mineral lead in 2010, a year-on-year increase of 13.25%. According to the prediction of the non-ferrous metal industry association, the total lead production capacity in China will reach 4.8 million tons in 2010. This is mainly due to the fact that several large domestic companies have played a relatively good role in completing the country's alternative backward production capacity technology industry. On the other hand, the supply of lead-zinc mine smelting is sufficient and the overall expectation of the market for non-ferrous metals prices in the second half of 2010 is also high. The start-up rate of lead-zinc mine smelting enterprises, of which lead in raw materials production increased by 36% in 2010, lead-zinc mine production in October reached 400,000 t.

In 2010, the output of recycled lead was 1.3 million tons, an increase of 770,000 tons compared with 2009, accounting for 32% of total lead production. Since 2008, China's total output of recycled lead has been maintained at around 30% of total national output. This is mainly due to automobiles and electric vehicles. Replacement of bicycles and other products ensure that the supply of lead-acid batteries is relatively stable. From 2012 onwards, a large number of vehicle battery replacements will drastically increase China’s lead consumption. The production of recycled lead is mainly concentrated in Anhui, Jiangsu, and Hubei provinces. The prominent one is Anhui. The total lead production of this year is 840,000 tons, and the amount of lead regenerated exceeds 700,000 tons. The industrial technology effect has played a major role.

In 2010, China's lead concentrate production was 1.851 million tons, an increase of 36.1% year-on-year, an increase of nearly 18 percentage points from last year. The output of lead concentrates in Inner Mongolia, Hunan, Guangxi, Sichuan, and Guangdong were respectively 426,000 t, 273,000 t, 238,000 t, 223,000 t, and 129,000 t, up 48.1%, 84.1%, and 88.8% year-on-year respectively. 29.3% and 6.4%. At present, the annual output of lead concentrates in the provinces with an annual output of more than 100,000 tons includes Inner Mongolia, Sichuan, Guangdong, Guangxi, Yunnan, and Hunan. The total output accounts for 71% of the country's total output. According to statistics from the Nonferrous Metals Industry Association, as of the end of 2007, China had a total of 774 lead-zinc mines, and there were two companies with annual lead-zinc ore production exceeding 50,000 tons. The largest number of enterprises was enterprises with scales below 5000 tons.

2. Profits of mining enterprises are higher than those of smelting enterprises In 2010, the sales value of lead and zinc industries reached 270 billion, mining enterprises realized an increase of 84 billion, and smelting enterprises achieved a growth of 58 billion. This was mainly due to the better-than-expected trend of lead, which stimulated production enthusiasm. In addition, the new smelting capacity increased in 2009, and related companies have taken measures to expand lead concentrate production in advance. Third, the new production capacity in 2010 also requires raw material support from mining companies. From January to October 2010, the lead-zinc business increased by 30% to 35% year-on-year, accounting for 12.34% of the color-metal industry.

3. Import volume of unwrought lead decreased significantly In 2010, 25496t of un-wrought lead was exported from China, an increase of 2.7% year-on-year; fine lead was exported at 23,000t, which was the same as in 2009; and 62369t of unwrought lead imported, a year-on-year decrease of 69.44%. Imported refined lead was 21,000 tons, a year-on-year decrease of 86%, and net imported unwrought lead was 36,800 tons, a year-on-year decrease of 79.4%. In 2010, the lead-zinc trade deficit widened to 5.505 billion U.S. dollars, up 8.5% year-on-year, and the annual trade deficit of lead products was 2.34 billion U.S. dollars, a year-on-year increase of 25.7%.

The import and export of lead in 2010 was characterized by the following characteristics: (1) China is still a non-wrought lead importer, but the import volume has decreased significantly. (2) The smelting enterprises have increased their processing fees and imported high-cost products, reducing imports of lead and zinc ore.

4. The increase rate of mining enterprises was higher than the 594 smelting and lead-zinc mining and smelting construction projects of smelting enterprises in 2010. The investment in newly-started projects reached 16.8 billion, an increase of 27% over the same period of last year. Lead newly started fixed assets investment reached 20 billion yuan, an increase of 31% year-on-year, and the growth rate increased by 15%. There were 368 smelting construction projects, and the newly-started investment was 44.56 billion yuan, a substantial increase of 43.8%, due to the large number of projects started in 2009, and the production cycle from start to completion was generally about 12 months.