Nov lead output grows more than expected

SHANGHAI, Dec 7 (SMM) – Despite smog alerts and environmental probes, China’s output of primary lead grew more than expected in November as large smelters stepped up production to meet annual output and sales targets and as some smelters in Liaoning and Henan recovered output from maintenance.

About 265,000 mt of primary lead was produced last month, up 3.74%, or some 9,600 mt month on month, but down 6.43% year on year. SMM had expected output of primary lead to climb to 253,300 mt in November.

This grew output in January-November to 2.72 million mt, standing 9.71% lower than the corresponding period last year.

In November, some smelters in Henan and Hunan were required to cut capacity by 10-30% due to heavy smog or environmental inspections, but output saw gains as most large smelters meet environmental standards. Besides, crude steel production stage, rather than the refining stage, was the major target of production curbs. Smelters could purchase crude lead to support their primary lead production.

Despite a smog season, output of primary lead is expected to grow some 15,000 mt from November to 279,800 mt in December given the anticipated end of maintenance at some large and medium-sized smelters in Henan, Shandong and Yunnan as well as the rush to meet annual production targets by year-end.