Average Operating Rate at China Primary Lead Smelters Up to 64.43% in October

SHANGHAI, Nov. 21 (SMM) – The average operating rate at major Chinese primary lead smelters edged up to 64.43% in October, from 64% in September, SMM’s survey of 49 primary lead smelters shows.

The average SMM #1 lead price slipped by 204 yuan per tonne in October, while silver prices fell by 202 yuan a tonne. This, combined with decreasing purchases by lead-acid battery producers, exacerbated liquidity shortages at primary lead smelters, resulting in production cuts at several smelters, including Chihong Zn & Ge.

Despite the curtailments, several large smelters completed maintenance, including Shuikoushan Nonferrous Metals and Anyang Minshan Nonferrous Metal, driving an output growth of 20,000 tonnes.

In addition, smelters that conducted maintenance earlier due to persistently low prices were forced to step up production in October to meet annual targets.

The primary lead smelters surveyed by SMM produced a total of 260,200 tonnes of refined lead in October, up 12,700 tonnes from 247,500 tonnes in September. The increase in output was due to the fact that the Jiyuan Wanyang Smeltery Group put a new facility on stream in October, helping drive up overall capacity by 50,000 mt/yr to 4.76 million tpy.

A small number of smelters in Inner Mongolia and Henan saw production disrupted by the APEC meeting held early November. But Shuikoushan Nonferrous Metals and Hunan Guiyang Yinxing Nonferrous Smelting both have increased output. SMM calculates that the output cuts are essentially offset by output increases and the average operating rate at China’s primary lead smelters will hold steady at 64%-65% in November.

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