Japan Electrolytic Lead Export for China Shrinks by 90% from Peak

Japanese electrolytic lead export is decreasing for China. According to the trade statistics by Ministry of Finance, the export was 301 tonnes in September, down by more than 90% from the peak. In domestic market, lead scrap supply shortened, a main material for secondary lead ingot, and lead supply and demand balance tightened. As a result, lead export seems to have settled down. On the other hand, electrolytic zinc export keeps high level.

Japanese lead export for China has expanded since the end of 2008. The export hit as high as 4,762 tonnes in March and kept above 1,000 tonnes per month until July. The export turned down in August when lead supply became surplus against the demand in China. Japanese lead export totaled 46,556 tonnes for January-September 2009, 1,8238 tonnes of which was bound for China.

Meanwhile, Japanese export of lead ingot containing antimony was 838 tonnes in September, which keeps 50% level compared with the peak in March 2009. The export totals 10,446 tonnes for January-September. These figures suggest Japanese lead export for China tends to shift from electrolytic lead to lead alloy.

As to electrolytic zinc, Japanese export was 3,609 tonnes in September, down by 702 tonnes from August. The export hit 12,000 tonnes in February and shrank by more than 65%. Despite of the down trend, the export volume still stays higher than the monthly average at 571 tonnes in 2008.

Domestic zinc smelters are cutting new export contracts. However, they hold export order backlogs by the end of this year. Zinc export would keep the high level within 2009.