China primary lead production shrank more than expected in February

SHANGHAI, Mar 6 (SMM) – Primary lead output in China declined more than expected in February, falling more than 40,000 mt from January to 214,000 mt, down 16.6% on the month and 4.9% on the year, showed SMM data. 

Lead smelters delayed their post-holiday resumption due to the COVID-19 outbreak. Major producers such as Hunan Yuteng and Yunnan Zhenxing prolonged their suspension after maintenance and did not recover operations until late-February. 

Some smelters cut their scheduled output for February or carried out overhauls on facilities as post-holiday transportation curbs led to supply disruption of raw materials and inventory buildup of lead ingot and by-product sulphuric acid. 

SMM estimates a rebound of close to 30,000 mt in primary lead output in China in March as suspended smelters resume from holidays and contribute to output after the removal of shipment restrictions and the return of workers with the spread the virus being contained in China. Resumption of Yunnan Zhenxing and Hunan Yuteng will also support a rebound in production in March.