Major market developments in July, China

Lead prices can move higher near term, helped by lower-than-expected output in top producer China, but they may struggle to shrug off expected weakness in other base metals markets, some analysts say.

Barclays Capital analyst Gayle Berry said the lead market would be balanced at best this year, indicating a supply deficit was possible.

PRODUCTION:

July 30 - China's Western Mining said it lowered its 2008 production forecast for lead and zinc after falling zinc concentrate prices cut first-half profits by 16 percent.

July 23 - Henan Yuguang Gold and Lead <600531.SS>, China's top lead producer, has reduced lead output by a third due to repairs, while smaller competitors in the area struggled with reduced power supplies.

July 18 - China produced 1,476,700 tonnes of refined lead in the first half of 2008, up 9.3 percent from a year earlier, figures from the National Bureau of Statistics showed. Chinese mined lead output rose 25.3 percent over the same period to 523,800 tonnes.

July 14 - The global lead market was in surplus by 31,000 tonnes in the first five months of 2008, the International Lead and Zinc Study Group (ILZSG) said. Global refined lead use totalled 3.470 million tonnes while refined output was 3.501 million tonnes.

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