China output of secondary lead in November

The output of secondary lead in November 2023 was 445,500 mt, a decrease of 6.43% from October and up 15.89% year on year; the cumulative output of secondary lead from January to November 2023 was 4.29 million mt, an increase of 10.97% year on year. In November 2023, the output of secondary refined lead was 391,800 mt, a decrease of 6.47% from October, and a growth of 14.9% year on year; from January to November 2023, the cumulative output of secondary refined lead was 3.74 million mt, an increase of 10.48% year on year.

According to survey, secondary lead production dropped by over 30,000 mt in November, which was the largest monthly decline in nearly nine months. There are four main reasons for the decline in production: First, the supply of battery scrap was tight and this limited output; second, losses at smelters from high costs and significant declines in lead prices were not motivated to produce; third, some medium and large smelters shut down for maintenance due to the price factor during the month, which affected about 10 days of output; fourth, the air quality in the heating season in the north was poor, and environmental protection controls caused some smelters to reduce production.

In December, market pessimism is still strong, and the price of battery scrap has a crucial impact on the trend of lead prices and the production of secondary lead smelters. Some smelters said that if the subsequent shipments arrivals of battery scrap can still meet production needs without price rising, they will maintain normal production in December; if the subsequent supply of battery scrap remains tight and lead prices remain weak, they may shut down for maintenance against severe losses. In addition, companies whose output fell due to maintenance in November are expected to return to normal in December. SMM expects the output of secondary refined lead to increase slightly by 6,000 mt in December. Raw material supply and prices may have an impact on actual production.