SMM Secondary Lead Smelter Weekly Operating Rate (2026.8.28-2026.9.3) [SMM Lead Weekly Review]

SMM, September 4:

From August 28 to September 3, 2026, the weekly operating rate of secondary lead smelters across the four provinces tracked by SMM stood at 41%, up 0.72 percentage points WoW. The increase this week was mainly driven by Anhui, where smelters that had previously cut production due to raw material constraints gradually ramped up output as imported crude lead arrivals improved. Smelters in Jiangsu and Inner Mongolia maintained high operating rates after completing production resumptions and ramp-ups, while Henan's operating rate was basically flat, with overall weekly production edging higher.

Looking ahead to next week, lead prices consolidating at highs are expected to support smelting margins, and as the battery sector gradually enters its traditional peak season in September, pre-holiday stockpiling ahead of the two festivals is set to begin, boosting smelters' willingness to ramp up production. However, the circulation of scrap battery supply remains tight, and raw material availability continues to be the key constraint on production. Smelters in Inner Mongolia have already reported tight raw material supply and face the risk of production cuts or suspensions. SMM expects next week's operating rate to consolidate on a subdued note.