China Will Cut Lead Exports, Support Prices, Antaike Says
2008-05-08 10:21:15
chinascrapmetal.com
China, which supplies a third of the world's lead, will probably further reduce exports of the metal, supporting global prices, according to Beijing Antaike Information Development Co.
Chinese lead sales, which fell 42 percent in the first three months, will decline again because exporters are deterred by lower global prices, Zhang Changhai, an Antaike analyst, said in a phone interview from Beijing today, without giving a more precise forecast.
Lead, used in car batteries, will be in surplus this year after five years of deficit because of growing output, the International Lead and Zinc Study Group said in April. Prices have fallen 21 percent in the past two months on the London Metal Exchange after stockpiles climbed to an 18-month high.
``It's economically impossible for China to export any of the metal at current prices,'' Zhang said. ``Lead prices in London have limited room to fall as China reduces supplies to the world, and we think $2,400 is a strong support level for London lead.''
The price of the metal for three-month delivery last traded at $2,555 a ton yesterday. It has averaged $2,874.94 a ton this year, compared with the 2007 average of $2,567 a ton.
Antaike is the research affiliate of China Nonferrous Metals Industry Association.
Chinese lead exports fell to 25,890 metric tons in the first quarter from 44,429 tons a year earlier, according to customs data.
Source: Bloomberg. May. 7 |
