SMM Survey: Will Environmental Checks Keep Striking Lead Market?

SHANGHAI, Jul. 12 (SMM) – Henan launched environmental protection inspections from July 5-10. SMM surveyed 19 lead smelters, including 4 large secondary lead smelters, 10 small secondary lead smelters and 5 primary lead smelters, and found following insights.

Primary Lead Smelters Hold Normal Production, and Secondary Lead Smelters Suffer Environmental Checks, SMM Reports

This round of provincial environmental check made limited impact on large secondary lead smelters, which held normal production, while primary lead smelters cut, or shut down, with some smelters cutting by one third of capacity. All small secondary lead smelters closed down, and will resume operation in late July.

China Primary Lead Output Edges down in June, and to Keep Falling in July, SMM Reports

In other news, SMM learns that most domestic small secondary lead smelters take a tactic of "guerrilla warfare", which suspend output in face of environmental checks and restart output as soon as inspection team leaves. Small secondary lead smelters in Shangqiu, Kaifeng and Xuchang are suffering repeated environmental checks and oppression from large smelters, which also decrease amounts of secondary smelter. However, those small smelters will revive soon once environmental factor subsides. SMM will update impact from environmental checks.

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