Operating Rate at China’s Secondary Lead Smelters Down in July; Raw Material Shortage Cited-Shanghai Metals Market

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Operating Rate at China’s Secondary Lead Smelters Down in July; Raw Material Shortage Cited

Industry News 05:54:28PM Aug 18, 2014 Source:SMM

SHANGHAI, Aug. 18 (SMM) – The average operating rate at Chinese secondary lead smelters fell in July to 48.92%, down from June’s 50.73%, the most recent SMM survey indicates.

Tight control over transport of dangerous goods in China disrupted scrap battery transportation. Moreover, some unqualified secondary lead smelters restarted operations, lured by rising profits, lifting demand for scrap batteries. Scrap motive battery prices climbed from some 7,300 yuan per tonne to 7,550 yuan per tonne by the end of July. The tight supply and high prices for raw materials impeded production at secondary lead smelters.

Secondary lead production at some regions was also restrained by rising temperatures.

SMM scrap battery prices are now quoted lower at 7,500 yuan per tonne as supply has increased appreciably in August. Thus, SMM expects the average operating rate at large secondary lead smelters to rebound in August.

Average Operating Rate at Chinese Secondary Lead Smelters in July 2014

Capacity

(mt/yr)

Number of Smelters

Surveyed Capacity (mt/yr)

Processed Scrap Batteries in July (mt)

Jul. Average Operating Rate

Jun. Average Operating Rate

MoM Change

>150,000

2

860,000

41,000

56.13%

66.49%

100,000-

150,000

8

1,080,000

42,800

46.66%

41.79%

<100,000

3

125,000

2,000

18.84%

19.47%

Total

12

2,065,000

85,800

48.92%

50.73%

Source: SMM

 

Operating Rate at China’s Secondary Lead Smelters Down in July; Raw Material Shortage Cited

Industry News 05:54:28PM Aug 18, 2014 Source:SMM

SHANGHAI, Aug. 18 (SMM) – The average operating rate at Chinese secondary lead smelters fell in July to 48.92%, down from June’s 50.73%, the most recent SMM survey indicates.

Tight control over transport of dangerous goods in China disrupted scrap battery transportation. Moreover, some unqualified secondary lead smelters restarted operations, lured by rising profits, lifting demand for scrap batteries. Scrap motive battery prices climbed from some 7,300 yuan per tonne to 7,550 yuan per tonne by the end of July. The tight supply and high prices for raw materials impeded production at secondary lead smelters.

Secondary lead production at some regions was also restrained by rising temperatures.

SMM scrap battery prices are now quoted lower at 7,500 yuan per tonne as supply has increased appreciably in August. Thus, SMM expects the average operating rate at large secondary lead smelters to rebound in August.

Average Operating Rate at Chinese Secondary Lead Smelters in July 2014

Capacity

(mt/yr)

Number of Smelters

Surveyed Capacity (mt/yr)

Processed Scrap Batteries in July (mt)

Jul. Average Operating Rate

Jun. Average Operating Rate

MoM Change

>150,000

2

860,000

41,000

56.13%

66.49%

100,000-

150,000

8

1,080,000

42,800

46.66%

41.79%

<100,000

3

125,000

2,000

18.84%

19.47%

Total

12

2,065,000

85,800

48.92%

50.73%

Source: SMM