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Rising Costs Squeeze China Secondary Lead Smelters into Losses
Sep 11, 2015 12:08Secondary lead smelters in China suffered losses this week on the back of growing costs, SMM learnt.
SHANGHAI, Sept. 11(SMM) – Secondary lead smelters in China suffered losses this week on the back of growing costs, SMM learnt.
Secondary lead prices were mainly 12,700-12,850 yuan per tonne in this past week with average price flat at 12,775 yuan per tonne. Nonetheless, scrap automobile battery (white shell) and motive battery prices averaged 7,040 yuan per tonne and 7,540 yuan per tonne, respectively, up 15 yuan per tonne, increasing costs for smelters,
Losses suffered by secondary lead smelters were widened by the VAT rebate cut. In Henan, flue ash, one of lead smelting by-products, prices fell to 75 yuan per tonne (Pb content) from 80 yuan per tonne (Pb content), further cutting profits for local smelters.
A growing number of secondary lead smelters in Shandong halted operation due to slack market, low profits and environmental protection inspections.
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