SMM Analysis: 2024 Lead Smelter Cost Curve and Profitability Outlook with Focus on Energy Savings and Resource Recovery

[SMM Analysis: A Brief Analysis of the 2024 Lead Smelter Cost Curve and Profit/Loss Changes]

In terms of smelting and processing costs, coal prices in 2024 are expected to fall back from the highs of 2023. Additionally, as energy-saving technological transformations such as waste heat recovery and energy storage solutions are completed at smelters, energy prices and costs are no longer frequently mentioned by lead smelters. Other cost components, such as labour, natural gas, oxygen, and smelting additives, show no significant fluctuations, with some manufacturers adopting continuous furnace designs to reduce energy consumption.

Looking ahead to 2025, lead smelting is expected to remain focused on the comprehensive recovery of silver, copper, zinc, and other rare metals. Although there is an anticipated increase in lead-zinc resource investments, the incremental growth of polymetallic associated lead ore resources is relatively limited. Meanwhile, the valuation of certain scarce resource-rich materials has undergone slight adjustments. As a result, the price spread in processing fees for different types of lead ore raw materials may widen again.