Silvercorp Metals Inc. T.SVM

Lead--Doesn't SVM produce a "little bit" of this t

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$0Lead prices soar on Chinese demand$0$0$0Posted: September 09, 2009, 2:10 PM by Eric Lam$0Mining, lead, China, U.S. Silver Corp, lead prices, Breakwater Resources, Ivernia West$0$0$0Lead prices appear to be on the rise, as world production of the metal is expected to decline ahead of consumption this year after posting a surplus in 2008.$0$0Hendrik Visagie, analyst with Octagon Capital, said while consumption of lead will drop to 8.6 million tonnes from 8.72 million tonnes, production will slip further to 8.55 million tonnes from 8.75 million.$0$0This would work out to a deficit of 50,000 tonnes of the lead in 2009, as opposed to a surplus of 30,000 tonnes the year before. $0$0"The reduction in lead metal production is a result of declining lead mine production due to the closure of a number of zinc mines, of which lead is often a by-product," Mr. Visagie said in a note to clients.$0$0On Tuesday, the price for lead on the London Metal Exchange rose to US$1.10 a pound, the highest it has been since May 2008. The price is also much higher than the 53 US cents a pound average in the first quarter of 2009 and the 63 US cents a pound in the second quarter.$0$0Lead consumption in China has jumped, with imports of the metal up 148,000 tonnes and lead concentrate imports up by 172,000 tonnes in the first seven months of the year.$0$0"The recent surge has come at a time of strong seasonal demand and reduced Chinese smelter capacity due to environmental concerns," Mr. Visagie said. $0$0He now expects lead to average 88 US cents a pound in the third quarter of 2009, US$1 a pound in the fourth quarter, and US$1.20 a pound in 2010.$0$0The higher price will likely give a boost to lead-producing companies such asIvernia West Inc., Breakwater Resources Ltd., and U.S. Silver Corp.$0$0Eric Lam $0$0$0$0https://network.nationalpost.com/np/blogs/tradingdesk/archive/2009/09/09/lead-prices-soar-on-chinese-demand.aspx$0