Primary lead smelter operating rate dipped on anti-smog curbs in Henan

SHANGHAI, Nov 22 (SMM) – Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 58.3% in the week ending November 22, down 0.2 percentage point from the previous week, according to an SMM survey.

Operating rates at Yunnan and Hunan remained unchanged at 43.8% and 45.5%, respectively, while the rate at Henan slipped 0.4 percentage point to 71.3% as the smelting stage at some smelters was required to cut capacity by 20-30% under an orange alert for heavy pollution.

The moderate decline in operating rates pointed to limited impact from the production curbs, as stocks of lead bullion were sufficient enough to largely secure production of refined lead.

Regions including Henan, Inner Mongolia and Guangxi saw higher treatment charges for lead concentrate this week, which is set to prompt smelters to ramp up operations, growing supply pressure in December and weighing on lead prices.