China Output Of Secondary Lead In October

The output of secondary lead in October 2023 was 476,100 mt, an increase of 3.91% from September and up 33.32% year on year; the cumulative output of secondary lead from January to October 2023 was 3.84 million mt, an increase of 10.43% year on year. In October 2023, the output of secondary refined lead was 418,900 mt, an increase of 4.23% from September, and a growth of 31.52% year on year; from January to October 2023, the cumulative output of secondary refined lead was 3.35 million mt, an increase of 9.99% year on year.

Production continued to increase in October, with the growth mainly seen in Jiangxi, Anhui and Guizhou. A large smelter in Jiangxi resumed production in mid-September. Its production was stable in October and daily output gradually returned to normal. A large smelter in Anhui has gradually increased its output since commissioning in August, and was basically at full capacity in October. A large smelter in Guizhou has expanded its production capacity in the second half of the year. Despite occasional equipment breakdown and debugging, the output grew significantly. According to SMM survey, many smelters cut production in October, mainly due to tight raw materials and equipment failure-driven maintenance, affecting output by a total of 14,000 mt. The output of secondary refined lead increased by 17,000 mt in October, which was 2,000 mt less than the SMM forecast.

Entering November, the shortage of raw materials has intensified, and the price of battery scrap has continued to rise. The pressure of raw material tightness and higher cost prompted some smelters to reduce production. The resumption of production of a large smelter in Anhui has been delayed. The temperature in the north (such as Inner Mongolia and Xinjiang) has dropped sharply, which has affected the battery scrap recycling. Meanwhile, the impact of occasional snowstorms increased the cost of energy consumption and transportation. There will be a reduction in production. SMM expects China's secondary refined lead output to fall to around 412,000 mt in November.