In November 2023, the domestic output of refined lead was 301,200 mt, a drop of 6.42% month-on-month but up 0.12% year-on-year. The cumulative output from January to November 2023 increased by 14.04% year-on-year. Total production capacities of enterprises in the survey totalled 5.84 million mt in 2023.
According to survey, refined lead production dropped by over 20,000 mt in November, which was the largest monthly drop in refined lead in the past five months. The main reason for the decline in output is that some lead smelters in Henan, Yunnan, Hunan and other places began maintenance, and most of them are medium-to-large-scale producers of delivery brands, which caused large fluctuations in output. Yunnan implemented power rationing in November due to the low-water season. At the same time, the escalation of the war in Myanmar led to the temporary closure of some gateways in Yunnan. The reduction in border trade of lead concentrates led to tight supply. These also led to the decline in the output of refined lead companies.
The refined lead smelters that were overhauled in November plan to resume operations in December, which will bring about a month-on-month increase in refined lead output of over 10,000 mt. Medium and large smelters in Henan, Yunnan, Hunan, Jiangxi and other regions restored after maintenance, which will lead to increase in refined lead output. On the other hand, tight supply of lead concentrate and the continued weakening of lead prices have reduced the production enthusiasm of some lead smelters, resulting in the possibility of output reductions. The conflict in northern Myanmar has continued to escalate recently, and some gateways in Yunnan are still closed. There are limitations in border trade of lead concentrate, which has tightened regional supply. In addition, lead smelters in Qinghai plan to upgrade the equipment of the lead smelting system from December 25 to increase the production capacity of lead ingots. During the technical transformation period (the first half of 2024), production will be suspended for half a year. SMM will track the actual production changes.
