BEIJING (Commodity Online): China is expected to produce 3.6 million tonne to 3.7 million tonnes of lead in 2009, up 12% to 15% from 2008 while zinc output is expected to grow 7% to 8% to 4.2 million tonne to 4.25 million tonnes.

The jump in recycled lead output is the main factor behind the increase.

Lead and zinc were the first nonferrous metals to be hit by the global financial crisis but they were also the first to recover. Monthly lead output surged 100,000 tonnes in March and it has stayed between 330,000 tonnes to 350,000 tonnes ever since.

Chinese lead output came in at 342,000 tonnes in September up 7.9% YoY even though a spate of poisoning scandals forced the government to launch a nationwide crackdown on polluting smelters. Output in August reached a new record of 364,800 tonnes.

China began constructing another 1.16 million tonnes of lead smelting capacity in 2009 and it is expected to go into operation over 2010 and 2011.

China’s zinc makers were facing overcapacity pressures with stockpiles now riding high. New projects with a total capacity of 770,000 tonnes expected to be launched in 2009 may now be postponed until 2010 depending on raw material supplies and treatment fees.

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