Although there has been anecdotal evidence of a fall in Chinese smelters' demand for imported lead concentrate in recent months, Chinese imports of lead concentrate have grown strongly this year. Chinese customs data show that imports in the first nine months of this year grew by 34 percent, year on year, to 628,875t. The year-on-year growth was concentrated in 2004 Q3. This growth represents an absolute increase in imports of 160,000t, which mainly comprised increased tonnages from Peru, the USA and Australia. The extremely low spot TCs reported in China this year are indicative of how aggressive smelters in this country have been in competing forWestern concentrates (although spot TCs are said to have increased in recent months - see Market Commentary). Many Western smelters have been unable or, at least, unwilling to compete with Chinese smelters and this is indicated by a fall in lead concentrate imports elsewhere. Imports of lead concentrate into Japan and South Korea have fallen. Moreover, while South Korean imports in the first nine months of this year fell by 11 percent, year on year, to 183,320t, there has been a significant tonnage of lead concentrate exported from South Korea to China this year. To this end, the net level of imports into South Korea in the first nine months of this year has fallen by 34 percent, year on year, to 133,375t. South Korea has negligible lead mine production and so its exports to China will have been imported initially. Imports from Switzerland have undergone the greatest absolute fall, indicating the exhausting of lead concentrate held by traders.
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