SHANGHAI, Jun 18 (SMM) - Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 42.55% in the week ended June 18, down 9.61 percentage points from the previous week, showed an SMM survey.
The cost remained high as lead-acid battery prices kept rising, while lead prices fluctuated lower, widening the losses of secondary lead smelters. Spot trade was poor, and finished product inventories were backlogged. Some large-scale smelters conducted maintenance to wait and see the market. Anhui Chilwee continued the maintenance for the second week due to the poor profits amid the busy farming season and less shipments. Tianchang, Jieshou Dadao, Huaxin Xinda and other companies halted production as well. Jiangsu New Chunxing saw decreased output on the week due to the technological transformation. In addition to the sample companies, Hebei Chentai also reduced production because of the low profits. Jieshou Dadao, Huaxin Xinda, and some other large-scale plants will gradually resume production next week, and the output of secondary lead is expected to increase slightly.
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