SHANGHAI, Jul. 1 (SMM) - China’s refined lead output grew 7.67% MoM in May to 357,400 mt, and the January-May output amounted to 1.67 million mt, down by 1.19%.

Production of non-primary lead – mainly secondary lead – climbed 18.27% to 110,300 mt in May. SMM believes this sharp output rise was mainly contributed by resumption of unlicensed secondary lead smelters driven by larger profits. SMM survey indicates that average operating rate at large, qualified secondary lead smelters dropped 2.18 percentage points in May to only 38.65% due to raw material shortages.

Output of primary lead grew 3.5% MoM to 247,200 mt in May, matching the result of SMM survey which shows major primary lead smelters’ operating rate grew 3.13 percentage points in May to 59.05%. SMM #1 lead price averaged RMB 13,700/mt in May, up RMB 500/mt from April, and mainstream traded prices were even higher. This price hike has encouraged primary lead production.