Operating rate of lead concentrate producers fell in December

According to new SMM sample, the average operating rate of lead concentrate producers stood at 50.80% in December, down 10.80 percentage points from the previous month and down 6.21 percentage points YoY.

The average operating rate according to the old sample stood at 48.71%, down 15.19 percentage points MoM and 12.31 percentage points YoY.

In December, the operating rates of lead-zinc mines declined as expected. Major lead-zinc mines such as Huaxia and Baoxiang in Tibet suspended production in winter, and the production resumption is tentatively scheduled for March 2024. A small-scale mine in Inner Mongolia stopped production at the end of November and focused on clearing inventory in December. Its production is tentatively scheduled to resume in April 2024. In addition, at the end of the year, some mines in Yunnan and Inner Mongolia lowered output in December after completing their annual plans ahead of schedule. In 2024, they will increase production according to the new annual plans.

Production at smelters in Hunan that had previously undertook maintenance resumed, growing lead concentrate output by nearly 1,000 mt in metal content. In addition, a lead-zinc mine in Jiangsu that had shut down due to explosives control for the national Memorial Day did not resume as planned, and the resumption may be delayed until after the CNY holidays. According to the new sample, the average operating rate in January is expected to rise slightly by 0.5 percentage point from the previous month to 51.3%.