China’s Primary Lead Output Up 16.92% in May, Out of Line with SMM Survey Result

SHANGHAI, Jul. 9 (SMM) – China’s primary lead output rose by 16.92% MoM to 288,000 tonnes based on CNIA data, but SMM regarded the rise as unlikely.

CNIA data revealed that primary lead output in Henan, Hunan, and Yunnan provinces was 118,300 tonnes, 103,100 tonnes, and 36,000 tonnes, respectively, in May, up 0.16%, 2.29%, and 40.78% month-on-month.

Nevertheless, the latest SMM survey found that maintenance at Jinli Lead Industry and Anyang Yubei Gold & Lead, as well as a production shutdown at Luoyang Yongning Gold & Lead Refining, significantly reduced primary lead output in Henan.

CNIA also reported that primary lead output in Liaoning Province rose sharply in May, increasing 12 times the April output level, which, however, is in contrast to SMM’s survey as well. SMM learnt that Huludao Nonferrous Metals, one of the two largest primary lead smelters in the region, conducted maintenance in May, and that no other new production capacity was reported to be put into production.

The increase in secondary lead output nonetheless dovetailed with the latest SMM survey. Anhui Huaxin Lead Industry Group and Tianjin Toho Lead Recycling both resumed production in May following equipment maintenance. In addition, Guangdong Yingde Xinyu Recycling Resource also began trial production in early May following a one-year production halt.