SHANGHAI, Dec. 12 (SMM) – A recent SMM survey of 40 major domestic primary lead smelters in November (total capacities: 3.64 million mt) revealed the following insights:

Operating Rates at Primary Lead Smelters Improve in Novermber.

According to an SMM survey of domestic primary lead smelters, refined lead output at major primary lead smelters in China was 184,600 mt during November, an increase of 14,700 mt from October. The average operating rate was 60.86% in November, up 4.85% MoM from the yearly low recorded in October.

Operating rates at large smelters with capacities over 100,000 mt/yr declined in November, while operating rates at small and medium smelters improved by varying degrees, helping push up the average operating rate. Operating rates at large lead smelters with capacities over 100,000 mt/yr was 73.98%, down 0.64% MoM. Output at Yuguang Gold and Lead Company and Wanyang Smeltery Group have not yet recovered due to a lack of crude lead supply caused by repairs to crude lead production lines, while output at Jinli Lead Industry Company and Yubei Gold and Lead Company were up as both increased production to meet annual targets, but failed to offset declines in overall output at large smelters.

Operating rates at medium smelters with capacities between 50,000-100,000 mt/yr rose to 55.04% in November, up 7.2% MoM, and was a major contributor to the recovery in overall operating rates for November. The rise at medium smelters is attributed to two major reasons. First, Shaanxi Nonferrous Metals Holding Group and Inner Mongolia Xing’an Silver Lead Smelting both restarted production upon completion of repairs. Second, power restrictions in Yunnan province were eased, allowing output to grow.

In November, refined lead output at small lead smelters with capacities less than 50,000 mt/yr reached 9,000 mt, a gain of 2,000 mt from October. Operating rates at small lead smelters rose from 38.18% in October to 49.09% in November, a gain of 10.91%. Since most of these smelters are located in Ynnan province where local power supplies improved, both operating rates and output were up.