Licensed secondary lead smelters little affected by environmental probes in May

SHANGHAI, Jun 12 (SMM) – Licensed smelters of secondary lead in China operated at an average higher rate of 52.21% in May, up 1.37 percentage points from April, as Anhui Huaxin recovered and Anhui Huabo, Henan Jinli commissioned new capacity. 

New environmental probes in May, which targeted small, unlicensed smelters, had little impact on licensed smelters of secondary lead.

SMM data showed that production across those licensed secondary lead smelters expanded 4,200 mt on the month to 160,800 mt in May. 

Operating rates for large smelters with an annual capacity above 100,000 mt stood at 50% in May, up 1.76 percentage points from a month ago, driven by recovery at Anhui Huaxin and ramped-up capacity at Anhui Huabo. SMM learned that poor downstream consumption prompted Jiangsu New Chunxing and Zhejiang Tianneng Energy to cut output in May. 

The rate for smelters with an annual capacity of 50,000-100,000 mt climbed 1.06 percentage points last month, to 56.59%, as Henan Jinli put new capacity online. However, a slow season and limited supply of battery scrap kept the smelter operating below full capacity. 

Across small smelters with an annual capacity below 50,000 mt, the rate averaged 67.14%, down 7.15 percentage points from April. A bearish outlook on prices drove Tianjin Dongbang to cut production and suspend in May. 

Smaller profit margins and the environmental checks weighed on rates across unlicensed smelters of secondary lead in May.