China lead the world supply of significant fine
 
China is the world's largest producer of lead ,03-06 years, the Western countries successive fine Lead consumption gap, China mainly relies on the annual net exports of about 400,000 tons of lead to make up for the fine. China lifted by the end of 06 fine lead export tax rebates, as well as 07 in mid-imposed export tariffs on 10% of the short-term fine lead have had a great impact on exports. September this year, China's exports 8,000 tons of lead Jing, a decrease of 74 percent year-on-year 1 - September total exports 195,000 tons, down 52.6%. In the export restrictions and frequent policy, 07 fine lead China's exports is a foregone conclusion has been substantially reduced. But in the short-term policy adjustments will result in reduced, the demand gap Western countries still need to be added to China's exports. Currently, LME and domestic spot price and the exchange rate is down to a level (included export tariffs), is expected next year, China's exports will return to about 400,000 tons level.
 
China policies on the production and export of fine lead strict restriction
  
China is currently lead smelting technology and equipment in non-ferrous metals industry level of the slowest, the worst production conditions, the lowest sulfur recovery, the most serious pollution metal smelting industry. Lead is rapid increase in production at the cost of sacrificing the environment. Some small and medium-sized smelters pursuit of short-term benefits from the production process wastewater directly discharged without treatment, which have caused serious environmental damage. September 06, China cancelled Refined lead, lead alloys, and 13% of lead-acid batteries for export tax rebates. June 1, 2007 onwards, lead material from the 13 per cent export tax rebates reduced to 5% export tax rebate electric bicycle down to 9%, unprocessed refining lead on 10 per cent of the export tariffs. November 14, 07, the State Development and Reform Commission issued on the strengthening of lead and zinc smelting industry-access management notice, and further the implementation of lead-zinc industry access standards. A series of policies that, in the face of rapid growth in consumption, its own resources for the realization of long-term development and rational use of energy and to reduce emissions and protect the environment, the Chinese Government on the production and export of resources will become more and more stringent restrictions.
 
Lead fine short-term supply and demand gap still exists, the future price is expected to maintain a firm lead
 
ILZSG statistics show that ,2004-2006 world supply has been fine lead the state of supply and demand gap is expected to lead 2007 global refining market for the supply shortfall of 62,000 tons, the world supply-demand gap fine lead still exists.
 
In recent years there could lead such a hefty price rise is the fundamental reason for China's rapid industrialization has led the process of global lead consumption, the value of lead have been upgrading. The next few years, demand will also lead China to maintain stable growth, and in China is relatively low yield Secondary Lead circumstances, lead recycling level is not high, China will not lead the market to a large number of surplus metal exports, consumption at home and abroad to To get metal must pay higher prices. With the global resources of the product warming, the short term can not be replaced 2-3 lead metal prices are relatively firm around.
 
With the increase in the supply of concentrate, rapid increases in processing fees. From July 06, the international spot market processing fees only 30 dollars / ton around early July of this year, the international market has increased the cash processing fees to 350-400 dollars / tons. September 07, the European spot market system processing fees to recover the PP, is 3,000 US dollars for the base price, plus or minus rates were 10% and 6%. No adjustment of the current range of the cash processing fees even more than the long-term contract processing fees. The global supply of zinc concentrate will be a surplus, we believe that 2008 processing fees provisions will be more conducive to smelters.