zinc/lead prices shoot up, page-3

ZINC?DOMESTIC PRODUCTION CONTINUES TO REPLACE IMPORTS CHINA ZINC UPDATED NOV 2010

China?s zinc metal net imports fell 20% m/m to 28Kt in September, down 17% y/y. They are now down 65% y/y YTD. Zinc in concentrate imports rose 37% m/m and have now more than doubled in the past two months, reaching 213Kt. They are still down 13% y/y YTD however.

Domestic zinc in concentrate production is up 32% y/y YTD and refined zinc production is up 24% y/y YTD as domestic production continues to replace imports now that prices have recovered. We would expect domestic production growth to continue to be robust, although if demand accelerates
into 2011-12, we would not be surprised to see imports recover as we do not expect demand to be able to ramp up fast enough.

Apparent consumption rose 14% m/m and is up 14% y/y in corrected terms. It is up 14% y/y YTD.