Metals News
China Major Lead Smelters to Cut Output on Price Slump
smm insight

SHANGHAI, Dec. 19 (SMM) – China’s major lead producers in Henan Province have decided to reduce production due to low prices, Shanghai Metals Market learns. 

Henan Yuguang Gold & Lead Co., Jinli Gold & Lead Co. and Wanyang Smelter Group lead the production cuts in Henan, citing current prices are far below production costs.    

Production is expected to be slashed by 15-30% and output plan for 2015 will be also reviewed, according to SMM sources. 

SMM also learns that many lead producers in Hunan and Jiangxi also plan to cut production, and some have already begun reducing output.   

Prices of lead in Shanghai Futures Exchange market tumbled in recent days and hit the lowest since the contract began in 2011 on Thursday. 

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