In April the domestic refined lead output was 291,500 mt

In April 2024, the domestic refined lead output was 291,500 mt, down 0.74% month-on-month and 7.41% year-on-year. The cumulative output from January to April 2024 fell by 4.38% year-on-year. Production capacities of enterprises involved in the survey totalled 6.0063 million mt in 2024.

Both maintenance and output recoveries occurred at refined lead smelters in April. Smelters in Hunan and Yunnan resumed production after maintenance. At the same time, since April, the price of lead has been fluctuating upward, and the price of by-product silver has hit a historical high. The production enthusiasm of smelters has improved, bringing an output increase of more than 10,000 mt. Medium and large enterprises in Henan, Hunan and Yunnan, most of which were producers of delivery brands, underwent maintenance, resulting in a production reduction of nearly 20,000 mt. The total output changed little.

The maintenance at more refined lead smelters, combined with tighter supply of raw materials such as lead concentrate, will reduce refined lead output further in May. The smelters in Hunan, Yunnan and other areas that were overhauled in April have not yet resumed, and enterprises in other regions have started maintenance. Meanwhile, TCs of lead concentrate hit a record low. SMM data showed that TCs for Pb 50% low-Ag lead concentrate were 600-800 yuan/mt with metal content, 50 yuan/mt with metal content lower than in April. TCs of high-Ag lead concentrate were zero to negative figures, reaching a low of -700 yuan/mt with metal content. The lead concentrate supply will restrict lead ingot output. SMM expects refined lead production to fall slightly in May to 287,000 mt.