China Output of Secondary Lead Climbed in July

The output of secondary lead in July 2023 was 375,700 mt, an increase of 3.16% from June and a decrease of 5.53% year-on-year; the cumulative output of secondary lead from January to July 2023 was 2.49 million mt, a cumulative increase of 1.63% year-on-year. In July 2023, the output of secondary refined lead was 335,200 mt, an increase of 4.87% from June, and a decrease of 1.38% year-on-year; from January to July 2023, the cumulative output of secondary refined lead was 2.17 million mt, a cumulative increase of 2.09% year-on-year.

According to SMM survey, there were many secondary lead smelting enterprises closed for maintenance in June. After July, many secondary lead smelting enterprises in Anhui, Hunan, Inner Mongolia and Jiangxi resumed production after maintenance. Meanwhile, one smelter in Liaoning stabilised output of its newly commissioned refined lead production line. Several smelters in Xinjiang, Yunnan and Guizhou failed to reach full production due to maintenance or tight battery scrap supply.

In August, lead prices fluctuated at high levels, and downstream purchasing interest improved. Most secondary refined lead smelting enterprises would increase production. While a large smelter in Ningxia reported significantly output decline due to maintenance, there will be smelters in Yunnan, Inner Mongolia, Jiangsu and Guangdong resuming production in August. The output in August is expected to still be on an upward trend. It is worth noting that the new production capacity in Anhui is about to go into operation, and large smelters in Jiangxi also have plans to increase output. As the tight supply of battery scrap can hardly ease, SMM expects the output of secondary refined lead in August to be around 353,900 mt.