Kyrgyzstan resumes lead exports to China after four-year hiatus

Kyrgyzstan has resumed lead exports to China for the first time since 2019, the General Administration of Customs of the People’s Republic of China (PRC) reports. A total of 1,700 tonnes of lead were exported from Kyrgyzstan to China in 2Q24, with an average price of approximately $1.8 per kilogram.

Kyrgyzstan’s lead exports to China were halted from 2020 to 2023. Several factors contributed to this interruption:

• Economic and political instability: The period from 2020 to 2023 was marked by significant economic and political challenges in Kyrgyzstan. These included changes in government, economic downturns, and disruptions caused by the COVID-19 pandemic, which collectively impacted the country’s export capabilities.
• Regulatory and environmental concerns: Stricter environmental regulations and concerns over mining practices may have also played a role in the suspension of lead exports. Ensuring compliance with international environmental standards is crucial for maintaining trade relationships.
• Market dynamics: Fluctuations in global lead prices and demand could have influenced the decision to halt exports. The lead market is sensitive to changes in industrial demand, particularly from sectors such as battery manufacturing and construction.

The resumption of lead exports in 2024 signifies a positive shift in Kyrgyzstan’s economic landscape. Recent political stability and economic reforms in Kyrgyzstan have created a more conducive environment for trade and investment. China’s robust industrial sector continues to drive demand for lead, particularly for use in batteries and other industrial applications. This demand has provided an opportunity for Kyrgyzstan to re-enter the market.

Improvements in mining practices and adherence to environmental standards have probably facilitated the resumption of exports. Sustainable mining practices are essential for long-term trade relationships.

Kyrgyzstan exported a lead worth approximately $5.6mn to China in 2019. The country's lead exports contribute significantly to its economy, with lead being one of the key mineral exports alongside gold and coal. With the resumption of lead exports, Kyrgyzstan aims to strengthen its trade ties with China and explore new markets for its mineral resources.