Chinese Secondary Lead Smelters in Anhui to Join Production Halts, SMM Says

Published: May 28, 2015 11:01 (GMT+8)

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Chinese secondary lead smelters in Anhui Province will likely halt production due to squeezed profits, Shanghai Metals Market survey foresees.

SHANGHAI, May 27 (SMM) – Chinese secondary lead smelters in Anhui Province will likely halt production due to squeezed profits, Shanghai Metals Market survey foresees.

The bigger drop in finished goods product over raw material has squeezed profits at local secondary lead producers, SMM survey finds, which is also the main reason behind the possible closures in Jiangxi and Inner Mongolia.

The price of secondary lead was 11,700 yuan per tonne in the week ending May 25, a drop of 300 yuan from the level in earlier May. The price of raw material, on the other hand, was little changed, according to SMM data.

The shortage of workers during the busy season in summer and environmental protection pressures also grow their intention to suspend production in the current sluggish market, local producers told SMM.

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