Asian Metal: Thank you for sharing your opinions about lead market. The base metals were dampened greatly by the concerns on Euro zone debt crisis in November and early December. However, participants paid less attention to it now. What do you think of the impact of Euro zone debt crisis on the nonferrous metal market?

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Ye: Most Chinese market participants have become accustomed to the volatile economic environment at abroad, especially the speculation of Euro zone debt crisis. I don’t think the debt crisis will impact greatly on the global financial market or the nonferrous metal market unless the Euro zone breaks up.

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Asian Metal: Will the China’s lead export market remain gloomy in 2011?

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Ye: Yes, I think so. There are few smelters, such as Zhuzhou Smelter, Yuguang Gold & Lead exporting lead at present due to the thin profit at present and they mainly export lead ingot 99.97-99.99%min. As long as the 10% of export tax is still on the refined lead, the lead export from China may not increase too much in the near term. The China’s lead import and export volume will be mainly depended on the prices at home and abroad.

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Asian Metal: The lead ingot market appeared quite sluggish in China in recent two months. Could you give us a comment on it?

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Ye: The key reason for the weak lead market is the shortage of funds for participants. Especially, after China’s central bank raised the reserve requirement ratio for times, banks reduced leading growth in the last quarter of 2010. Therefore, most participants lack money now. Actually, most lead acid battery producers would like to buy the metal. Meanwhile, some private lead smelters are also under the pressure from the shortage of capitals, so they are active in selling the metal, exerting pressure on the lead prices in China. When will the banks furnish the credit to the companies and how much the total leading will be in January will have an important impact on the lead ingot market movement before Spring Festival holidays. If the liquidity is sufficient and most companies can obtain the loan in early January, the lead prices may recover soon. Otherwise, the lead ingot market will remain sluggish.

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Asian Metal: It is reported that the power supply turns tight in Henan province. Will the news push up the lead ingot prices?

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Ye: I do not think the lead ingot supply will be impacted greatly by the shortage of power supply in Henan or the scarcity of water supply in Yunnan. However, as most consumers were inactive purchasing lead ingot for almost one month due to the shortage of capitals, they hold very low inventory of lead ingot and may return to the market in January, pushing up lead ingot prices slightly.

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Asian Metal: The lead contract may be launched on the SHFE in 2011. What do you think of it?

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Ye: After the contract is launched, most major lead smelters or consumers can shift risks by hedging in futures market. I think the fast growing secondary lead market may bring much pressure on the Chinese lead market in the coming years.

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Asian Metal: What do you think of the performance of lead market in the first quarter of 2011?

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Ye: I think the lead prices will be on the rising road in the first quarter. The movement will be depended on the new monetary policy, environment protection policy and the integration of smelters and mines in 2011. Chinese government may strengthen supervision on the pollution in lead industry in 2011.

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Asian Metal: China introduced the preferential acquisition tax on small-displacement cars of 1.6L or below to combat with the economic crisis in the past two years, leading to the fast growth of vehicles in China. However, China will end the preferential policy in 2011. Will it bring much impact on the Chinese automobile market, the lead acid battery market and the lead ingot market?

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Ye: The growth of automobile production and sales may slow down in 2011. However, the demand for lead ingot will mainly depended on the automobile population, so the demand for lead ingot may remain relatively steady in 2011. Additionally, impacted by the environmental protection, some small-sized lead smelters or mines may have to shut down, leading to the supply decline. Therefore, I still hold relatively optimistic prediction on the lead market in the mid and long term. Meanwhile, the copper performed quite strong in recent months. The base metals may be pushed up one by one on the speculative buying in the coming years.

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Asian Metal: China grew very fast during 2006-2010, how about your company in the five years?

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Ye: Our company was founded in 2006. With the joint efforts of all the employees, our company has established the long-term cooperation with almost all the major lead smelters and lead acid battery producers in China. We mainly deal with lead ingot 99.994%min, lead ingot 99.97%min and crude lead 98%min. In addition, we have cooperated with some lead smelters in Jiangxi, Henan and Shanxi to produce the lead ingot 99.994%min with brand of Zhoutai. Our lead ingot sales volume keeps at about 8,000-10,000t per month and the total sales volume reached 100,000t in 2010.

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Asian Metal: What is your company’s plan in the next five years?

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Ye: We will continue to increase our sales volume. Besides concentrating on lead ingot market, we will began try to start the business of antimony, tin and silver in the coming years.

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Asian Metal: Hope your company can gain more progress in the coming five years.

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Ye: Thanks!