Secondary Lead Production in China Plummets in February, Spot Trading Difficult to Improve After Holiday?

SMM February 4 News：

Secondary lead production saw a slight increase in January 2026, rising 2.97% MoM and 25.12% YoY; secondary refined lead production increased 5.04% MoM and 22.26% YoY.

In January, waste lead-acid battery recyclers saw improved shipment activity compared with December due to a sharp decline in lead prices; lead smelters experienced an overall improvement in raw material arrivals and higher inventory levels. Meanwhile, downstream battery producers conducted routine pre-Chinese New Year stockpiling, leading to increased demand for long-term contract cargo pick-ups; some secondary lead smelters ramped up production to meet delivery requirements. Additionally, two smelters in east and central China resumed production after renewing their hazardous waste operating permits, contributing to the rise in secondary lead output in January.

However, the sharp drop in lead prices significantly increased operating pressure on secondary lead smelters, with some reducing or halting production due to losses. Overall, increases and decreases in secondary lead production largely offset each other in January, resulting in only a limited net increase.

With the Chinese New Year holiday falling in mid-February and weak end-use consumption, lead-acid battery producers scaled back pre-holiday stockpiling compared with previous years. The sluggish sales of lead ingots intensified finished product inventory pressure on secondary lead smelters. According to SMM, enterprises suspending production during the holiday started their breaks one week earlier YoY. Coupled with three fewer calendar days in February compared with January, secondary lead production in February is estimated to decline by approximately 110,000 mt.

It is reported that most downstream battery producers will begin holidays around February 8, with expected later resumption dates YoY. Upstream battery recyclers halted operations in early February, with most planning to resume around the Lantern Festival. Secondary lead smelters will coordinate production restarts in March, considering both upstream raw material supply and downstream lead ingot demand. SMM expects that trading activity in the spot market will remain sluggish after the Chinese New Year holiday.