Current status and outlook for Chinese secondary lead industry

1
Current status and outlook for Chinese secondary
lead industry

• Zhang Changhai, Raymond Zhang
• Beijing Antaike Information Development Co., Ltd.

2
Outline

• Current situation
• -- production
• -- Raw materials
• -- Production scale
• -- Technology
• -- Policy
• Development trend
• Conclusion

3
Rising production

• Chinese refined lead production in 2001-2008
  increased from 1.2mlnt to 3.1 mlnt, with an
  annual growth rate of 14.3, while the secondary
  lead from 270kt to 866kt, with an annual growth
  rate of 18.1.

4
Rising production
5
Raw materials supply
Production
Lead content in Chinese replaced lead acid battery
Service life 3-4 years
6
Lead consumption structure
7
Special recycling system of used lead acid
batteries
8
Production scale low concentration

• Total number of producers involved in secondary
  lead production, 100
• Total capacity existing 1.3mln tpy
• Capacity above 100kt, 5

9
Production Scale geological concentrated
Baoding
Jiyuan
Linyi
Peizhou
Gucheng
Jieshou
Taihe
10
Production scale consolidation
Company Province Capacity Technology Situation
Anhui Huaxin Lead Industry Co., Ltd. Anhui 180 Reverberatory furnace Regrouped by 16 lead smelters
Taihe Huanyu Chemical Co., Ltd. Anhui 100 Reverberatory furnace Regrouped by 11 crude lead smelters and one refinery
Taihe Shunda Co., Ltd. Anhui 100 Reverberatory furnace Regrouped by 7 crude lead smelters and one refinery
Taihe Changjiang Co., Ltd. Anhui 100 Reverberatory furnace Regrouped by 13 crude lead smelters and one refinery
Linyi shunhe Lead Co., Ltd. Shandong 50 Reverberatory furnace Regrouped by 4 crude lead smelters
11
Technology advanced backward coexisting

• Advanced CX, MA, oxygen bottom blowing
• Integrated Yuguang, Chunxing Dongbang
• Backward, handwork, reverberatory
• Non-integrated

12
Technology-dismantling of battery
13
Technology-Smelting

• 90 traditional reverberatory
• 10 advanced drum, shaft oxygen bottom blowing

14
Technology-- smelting
Drum furnace
15
Technology
16
Policy -- encourage

• Energy saving
• Emission reduction
• Low cost
• Resource shortage

17
Policy-- license

• Secondary lead enterprises should get licenses
  for recollecting, transporting, dismantling and
  smelting
• Prevent acid leakage in collecting and
  transportation
• Dismantling in specified placement
• Encourage the concentrate of enterprises in
  indicated areas.

18
Policy Recycling parks
Anhui Jieshou Tianying Recycling Park
19
Policy Recycling parks

• Jieshou
• 40 enterprises, including recollecting,
  dismantling, smelting and processing
• Peizhou
• On the basic of Jiangsu Chunxing Shengke
  Alloys Co., Ltd.
• Taihe
• Small secondary lead enterprises moving in

20
Policy- admittance requirement

• A range of policies and regulations set to
  regulate and support Chinese secondary lead
  industry
• Admittance Requirement for Lead and Zinc
  Industry, issued on March 10th, 2007, ordered the
  basic production indexes of Chinese secondary
  lead producers

21
Admittance Requirement for Lead and Zinc Industry

• Capacity
• Existing secondary lead smelter over 10ktpy
  
• Brownfield secondary lead project over
  20ktpy
• Greenfield secondary lead project over
  50ktpy.
• Energy consumption less than 130kg (coal
  equivalent) 100 kwh per 1t of secondary lead
• Gross lead recovery rate
• Greenfield secondary lead project over 97
• Existing secondary lead project over 95
• lead content in slag less than 2
• Wastewater recycling rate more than 90.

22
Outline

• Current situation
• -- production
• -- Raw materials
• -- Production scale
• -- Technology
• -- Policy
• Development trend
• Conclusion

23
Development trend

• Secondary lead sector is becoming increasingly
  important in Chinese lead industry
• Improved policy
• Primary smelters involve in secondary production

24
Secondary lead sector is becoming increasingly
important in Chinese lead industry

• After rapidly developing for years, the total
  volume of the commodities using lead acid battery
  has climbed to a high level. With an average
  service life of 3 years, the big holding volume
  of the batteries will provide more and more waste
  lead materials for Chinese secondary lead
  industry.

25
Secondary lead sector is becoming increasingly
important in Chinese lead industry
Chinese refined lead production in 2009-2015 will
increase from 3.2mlnt to 4.4 mlnt, with an
annual growth rate of 5.4, while the secondary
lead from 987kt to 2,080kt, with an annual growth
rate of 13.2. Secondary lead output accounts
for 50 in total by 2015
26
Secondary lead sector is becoming increasingly
important in Chinese lead industry
27
Improved policy

• More policies will be issued to improve the
  regulation on Chinese secondary lead industry
• The government aims to ensure a sustainable and
  health development for the sector.

28
Primary smelters involve in secondary production

• In the west, it is common for primary smelters to
  involve in the production of secondary lead.
• In China, so far, only Yuguang,
• More smelters are expected to join in
• Chinese key lead acid battery manufacturers
  interested in extend to secondary lead sector
• Good for raising efficiency of lead scraps
  recycling and utilization in the near future, but
  may cause over much capacity in Chinese secondary
  lead industry.

29
Conclusion

• Secondary lead production to increase
  continuously with growing availability of lead
  scraps
• Concentration raising
• Technology upgrade
• Policies to be improved further
• Target by 2015, secondary production will
  account for 50 of the total, close to the level
  in developed countries.

30
Thank you! Raymond Zhang Email
cmm_at_antaike.com 2nd Floor, 12B Fuxing
Road, Haidian District, Beijing Tel
0086-10-63978092, ext. 8096 Fax[phone] w
ww.antaike.com