China Lead and Zinc Industry Report, 2010-2012

【Abstract】：
   
In recent years, the global lead-zinc smelting capacity keeps being transferred to China, and the lead-zinc production capacity of China has presented high-speed growth since 2004. In 2010, the lead and zinc production and sales volume of China both accounts for 41% of global total, ranking first around the globe. At present, refined lead has been in overcapacity in domestic Chinese market, while refined zinc is much sought after.

Chinese lead and zinc industry characterizes the followings:

Firstly, the lead and zinc industry features a low concentration degree. There are numerous lead-zinc manufacturers but with limited production in China. In H1 2011, the outputs of lead and zinc of the top five companies by lead-zinc output merely occupy 17.3% and 26.8% of national total output, respectively.

Secondly, Chinese lead-zinc smelting companies have a heavy reliance on the overseas concentrate products. Since 2004, China has been the importer of lead and zinc concentrates from abroad. From January to September of 2011, China totally imported 951,000 tons of lead concentrates, sharing 28.2% of refined lead output in the same period; and it imported 2.204 million tons of zinc concentrates, accounting for 57.6% of zinc output in the same period.

Last, secondary lead is the focus of investments in the lead and zinc industry. During January to September of 2011, China’s output of refined lead reached 3.374 million tons, rising 14.11% year-on-year; wherein, the output of mineral lead registered 2.36 million tons, taking 70% of total refined lead output, and that of secondary lead occupied 30% of the total. The world’s secondary lead accounts for 52.47% on average. Compared with mineral lead, the secondary lead is characterized by little consumption of resources, little pollution and high gross margin. Due to the shortage of lead resources, the Government endeavors to develop circular economy and construct resource-saving society, and Chinese production capacity of secondary lead will rise substantially.

The report not only analyzes the supply and demand, export and import and competition pattern of the global and China lead and zinc industry, but studies the eight key players in Chinese lead and zinc industry, covering production, operation, project planning, prospects and forecasts.

Currently, Chinese lead and zinc companies raise the gross margin of products and enhance profitability mainly through two means:

Firstly, the high cost of raw materials severely cut the profit of smelting enterprises since most lead-zinc ore resources are under control of international mining giants. Thus, some Chinese lead and zinc companies should increase resource reserves through mergers and acquisitions, equity purchase and so forth and extend towards the upstream of lead-zinc industry chains.

Taking Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd for example, in 2008, it expanded its lead-zinc resource reserves, reduced the cost of smelting raw materials and significantly promoted the gross margin of products by means of equity merger on Australian PEM Mine. Also, the company sold part of lead-zinc concentrates and yielded considerable benefits. In the first three quarters of 2011, the net income of the company soared 78.57% YoY to RMB715 million.

Secondly, some companies also carry the deep-processing of lead-zinc mine tailings and produces by-products such as rare precious metals, marching into the downstream of the industrial chains.

For instance, Yunnan Chihong Zinc＆Germanium Co., Ltd effectively raises its profit margin by the deep-processing of mine tailings to produce precious metals like silver, molybdenum, germanium, etc. In the first three quarters of 2011, its operating revenue amounted to RMB4.044 billion, up 14% year-on-year; and net income got to RMB251 million.

Additionally, part of lead and zinc firms without or short of lead and zinc reserves are confined to the smelting segment of the industrial chain. At present, those pure smelting firms are mostly in meager profit or the loss with the comparatively high costs of raw materials and processing, with the Zhuzhou Smelter Group Co., Ltd and Huludao Zinc Industry Co.,Ltd as the most typical cases.

【Table of Contents】 

1. Overview of Lead & Zinc Industry
1.1 Profile of Lead & Zinc
1.2 Application
1.3 Industrial Chain

2 Development of Global Lead & Zinc Industry
2.1 Reserves and Distribution
2.2 Supply and Demand
2.2.1 Lead
2.2.2 Zinc

3 Development of China Lead & Zinc Industry
3.1 Reserves and Distribution
3.2 Industry Policy Adjustments
3.2.1 Industrial Policies
3.2.2 Export Policies
3.3 Supply and Demand
3.3.1 Lead
3.3.2 Zinc
3.4 Import & Export
3.5 Prices

4 Competition Pattern of China Lead & Zinc industry
4.1 Regional Competition
4.1.1 Lead
4.1.2 Zinc
4.2 Corporate Competition

5 Key Companies in China Lead & Zinc Industry
5.1 Henan Yuguang Gold & Lead Group Co., Ltd
5.1.1 Profile
5.1.2 Production
5.1.3 Operation
5.1.4 Project Planning
5.1.5 Forecast, 2011-2012
5.2 Zhuzhou Smelter Group Co., Ltd
5.2.1 Profile
5.2.2 Production
5.2.3 Operation
5.2.4 Project Planning
5.2.5 Forecast, 2011-2012
5.3 Western Mining Co., Ltd
5.3.1 Profile
5.3.2 Production
5.3.3 Operation
5.3.4 Project Planning
5.3.5 Forecast, 2011-2012
5.4 Yunnan Chihong Zinc＆Germanium Co., Ltd
5.4.1 Profile
5.4.2 Production
5.4.3 Operation
5.4.4 Project Planning
5.4.5 Forecast, 2011-2012
5.5 Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd
5.5.1 Profile
5.5.2 Production
5.5.3 Operation
5.5.4 Project Planning
5.5.5 Forecast, 2011-2012
5.6 Zijin Mining Group Co., Ltd
5.6.1 Profile
5.6.2 Production
5.6.3 Operation
5.6.4 Project Planning
5.6.5 Forecast, 2011-2012
5.7 Huludao Zinc Industry Co.,Ltd
5.7.1 Profile
5.7.2 Production
5.7.3 Operation
5.7.4 Project Planning
5.7.5 Forecast, 2011-2012
5.8 Sichuan Hongda Co., Ltd
5.8.1 Profile
5.8.2 Production
5.8.3 Operation
5.8.4 Project Planning
5.8.5 Forecast, 2011-2012

【Figures & Tables】

Import & Export Volume of Zinc Material in China, 2007-2011
Prices of Zinc & Lead Concentrates in China, 2008-2011
Prices of Zinc & Lead in China, 2008-2011
Refined Lead Output by Region in China, Jan.-Aug.2011
Lead Concentrate Output by Region in China, Jan.-Aug.2011
Refined Zinc Output by Region in China, Jan.-Aug.2011
Zinc Concentrate Output by Region in China, Jan.-Aug.2011
Output of Lead- Zinc & Lead Concentrates of Top 5 Companies
Applications of Lead (by Product) in the World, 2010
Applications of Zinc (by Product) in the World, 2010
Applications of Lead (by Product) in China, 2010
Applications of Zinc (by Sector) in China, 2010
Lead & Zinc Industry Chain
Reserves of Metallic Lead Worldwide (by Country), 2009
Reserves of Metallic Zinc Worldwide (by Country), 2009
Global Refined Lead Output & Demand,2006-2012
Global Refined Lead Consumption Structure (by Country), 2010
Global Refined Lead Supply Structure (by Country), 2010
Global Refined Zinc Output & Demand, 2006-2012
Global Zinc Supply Structure (by Country), 2010
Global Zinc Sheet Consumption Structure (by Country), 2010
Distribution of Lead Ore Reserves in China, 2010
Distribution of Zinc Ore Reserves in China, 2010
Policies concerning Chinese Lead & Zinc Industry, 2006-2011
China Refined Lead Output & Apparent Consumption, 2006-2011
China Mineral Lead Output, 2006-2011
China Refined Zinc Output and Apparent Consumption, 2006-2011
China Mineral Zinc Output, 2006-2011
Import Volume of Lead Concentrates in China, 2007-2011
Import & Export Volume of Refined Lead in China, 2007-2011
Import & Export Volume of Lead Material in China, 2007-2011
Import Volume of Zinc Concentrates in China, 2007-2011
Import & Export Volume of Refined Zinc in China, 2007-2011
Production and Resource Reserves of Top Five Companies (by Refined Lead Output) in China, H1 2011
Production and Resource Reserves of Top Five Companies (by Refined Zinc Output) in China, H1 2011
Profit Making of Key Companies in Chinese Lead-Zinc Industry, Jan.-Sep.2011
Key Subsidiaries of Henan Yuguang Gold and Lead Group Co., Ltd
Lead Output of Henan Yuguang Gold and Lead Group Co., Ltd, 2008-2011
Operating Revenue of Henan Yuguang Gold and Lead Group Co., Ltd, 2003-2011
Operating Revenue and Net Income of Henan Yuguang Gold and Lead Co., Ltd,
Operating Revenue of Henan Yuguang Gold and Lead Co., Ltd (by Sector), 2008-2011
Key Projects of Henan Yuguang Gold and Lead Co., Ltd
Lead-Zinc Output, Operating Revenue and Net Income for Henan Yuguang Gold and Lead Group Co., Ltd，2010-2012
Operating Revenue of Henan Yuguang Gold and Lead Co., Ltd (by Product), 2008-2011
Lead-Zinc Output of Zhuzhou Smelter Group Co., Ltd, 2008-2011
Operating Revenue and Net Income of Zhuzhou Smelter Group Co., Ltd, 2008-2011
Operating Revenue of Zhuzhou Smelter Group Co., Ltd (by Region), 2008-2011
Lead-zinc Mine Resources of MMG
Lead-Zinc Output, Operating Revenue and Net Income of Zhuzhou Smelter Group Co., Ltd, 2010-2012
Operating Revenue Breakdown of Zhuzhou Smelter Group, 2010-2012
Lead & Zinc Products Output of Western Mining Co., Ltd, 2007-2011
Operating Revenue and Net Income of Western Mining Co., Ltd, 2007-2011
Operating Revenue of Western Mining Co., Ltd,2008-2011 (by Sector)
Operating Revenue of Western Mining Co., Ltd,2008-2011 (by Product)
Operating Revenue of Western Mining Co., Ltd,2008-2011 (by Region)
Major Lead-Zinc Projects of Western Mining Co., Ltd
Performance of Western Mining Co., Ltd, 2011-2012
Operating Revenue Breakdown of Western Mining Co., Ltd, 2010-2012 (by Sector)
Lead & Zinc Reserves of Yunnan Chihong Zinc & Germanium Co., Ltd
Lead & Zinc Product Output of Yunnan Chihong Zinc & Germanium Co., Ltd., 2007-2011
Operating Revenue and Net Income of Yunnan Chihong Zinc & Germanium Co., Ltd, 2006-2011
Operating Revenue of Yunnan Chihong Zinc & Germanium Co., Ltd. (by Product), 2008-2011
Operating Revenue of Yunnan Chihong Zinc & Germanium Co., Ltd. (by Region), 2008-2011
Key Projects of Lead and Zinc Resources of Yunnan Chihong Zinc & Germanium Co., Ltd
Key Project Schedule of Yunnan Chihong Zinc & Germanium Co., Ltd
Performance of of Yunnan Chihong Zinc & Germanium Co., Ltd, 2011-2012
Operating Revenue Breakdown of Yunnan Chihong Zinc & Germanium Co., Ltd. (by Product)，2010-2012
Lead-Zinc Reserves of Zhongjinlingnan Nonfemet Co., Ltd
Lead-Zinc Products Output of Zhongjinlingnan Nonfemet Co., Ltd, 2008-2011
Operating Revenue and Net Income of Zhongjinlingnan Nonfemet Co., Ltd, 2008-2011
Operating Revenue of Zhongjinlingnan Nonfemet Co., Ltd 2008-2011(by Product)
Operating Revenue of Zhongjinlingnan Nonfemet Co., Ltd 2008-2011(by Region)
Oversea Lead-Zinc Resources of Zhongjinlingnan Nonfemet Co., Ltd
Lead-Zinc Output, Operating Revenue and Net Income of Zhongjinlingnan Nonfemet Co., Ltd, 2010-2012
Operating Revenue Breakdown of Zhongjinlingnan Nonfemet Co., Ltd, 2010-2012
Lead-Zinc Products Output of Zijin Mining Group Co., Ltd., 2007-2011
Operating Revenue and Net Income of Zijin Mining Group Co., Ltd., 2007-2011
Operating Revenue of Zijin Mining Group Co., Ltd. (by Product), 2010-H1 2011
Lead-Zinc Output, Operating Revenue and Net Income of Zijin Mining Group Co., Ltd, 2010-2012
Operating Revenue Breakdown of Zijin Mining Group Co., Ltd,2010-2012
Lead-Zinc Products Output of Huludao Zinc Industry Co., Ltd., 2008-2011
Operating Revenue and Net Income of Huludao Zinc Industry Co., Ltd., 2007-2011
Operating Revenue of Huludao Zinc Industry Co., Ltd. (by Product), 2008-2011
Lead-Zinc Output, Operating Revenue and Net Income of Huludao Zinc Industry Co., Ltd ,2010-2012
Lead-Zinc Products Output of Sichuan Hongda Co., Ltd., 2008-2011
Operating Revenue and Net Income of Sichuan Hongda Co., Ltd., 2008-2011
Operating Income of Sichuan Hongda Co., Ltd. (by Product), 2008-2011
Key Lead-Zinc Smelting Projects of Sichuan Hongda Co., Ltd.
Lead-Zinc Output, Operating Revenue and Net Income of Sichuan Hongda Co., Ltd, 2010-2012