Recently, the Hunan Provincial Development and Reform Commission released the list of key provincial construction projects and preliminary work projects for 2026, including 389 key construction projects and 41 preliminary work projects. Among them, there are two lead-zinc related projects: the Huayuan Danaopo Lead-Zinc Mine’s annual 3.96 million-ton mining and beneficiation project, and the Hengyang Xianyi New Materials’ annual 100,000-ton comprehensive recycling and utilization of lead-containing waste materials and non-ferrous metal alloy manufacturing project.

PriceSeek Analysis

Lead
Bull-Bear Score: -1.5
The Hunan Provincial Development and Reform Commission has announced lead-zinc related projects, including the Huayuan Danaopo Lead-Zinc Mine’s annual 3.96 million-ton mining and beneficiation project and Hengyang Xianyi New Materials’ annual 100,000-ton comprehensive recycling and utilization of lead-containing waste materials project. These projects will significantly increase lead supply, potentially leading to market oversupply and exerting strong downward pressure on spot lead prices. A score of -1.5 reflects a moderate to significant bearish outlook, given the large scale of the projects and their direct impact on supply, though the national market’s absorption capacity should also be considered.

Zinc
Bull-Bear Score: -1.5
The Huayuan Danaopo Lead-Zinc Mine project involves zinc mining, and its annual 3.96 million-ton mining and beneficiation project will directly increase zinc supply. The additional capacity may exacerbate market supply-demand imbalances, posing a bearish impact on spot zinc prices. A score of -1.5 indicates a strong bearish outlook due to the significant supply growth, though further observation of demand-side changes for zinc is necessary.