Lead market summary Dec 24 - 28

After closing for three days,3-month lead retreated slightly on LME on Thursday,while Chinese lead price kept increasing early this week, Market participants hold optimistic attitudes towards future lead market in the long term.
3-month lead edged down by USD10/t to USD2,635/t on LME on Thursday, though lead ingot inventory reduced by about 70t in the warehouses of LME. The price continued to decline by USD75/t to USD2,560/t this Friday.
Chinese lead price performs well this week. The price kept rising from RMB18,800-18,900/t (USD2,575-2,589/t) late last week to RMB19,400-19,500/t (USD2,658-2,671/t) this Wednesday. 12 lead smelters with total capacity of about 460,000tpy in Yunnan stopped production in mid December, driving Chinese lead price up. In addition, the news that China not to increase export tariff on lead ingot next year also underpins Chinese lead price. The price stabilized on Thursday, and retreated by about RMB100/t to RMB19,300-19,400/t (USD2,644-2,658/t) on Friday, influenced by the decline of 3-month lead on LME.
Lead acid battery plants hold large stockpiles of batteries now. Under the pressure of capitals turnover, they are still reluctant to purchase lead ingot with large quantities. Meanwhile, some lead acid battery plants reduced or stopped production in past few months. Therefore, most sources think Chinese lead price may fluctuate at around RMB20,000/t (USD2,740/t) in a short time but may increase in the long term.
Lead concentrate market goes slowly in Chinese market this week. Dragged up by the rebound of lead price, lead concentrate 60%min price also edged up by about RMB200/t (USD27/t) to about RMB15,000/t (USD2,055/t) ex works in Chinese market this week. Smelters are still prudent to purchase lead concentrate presently. In addition, it is difficult for Chinese traders and smelters to import lead concentrate now. The treatment charge of lead concentrate retreated slightly to around USD300/t CIF China.