SHANGHAI, Sept. 24 (SMM) – China’s lead prices are expected to be supported by supply tightness in secondary refined lead, SMM lead analysts predict.
Secondary refined lead supply trends for losses. Almost all secondary lead producers shut down in Shandong on environmental protection inspections. Thus, raw material supply halt in Shandong lead to operation halt at nearby secondary refined lead smelters. Besides, most secondary refined lead smelters also shut down in Jiangsu as a result of raw material shortage and impact from environmental protection inspections. In Henan, secondary refined lead prices are likely to rise.
A such, receding supply in secondary refined lead and tightness in primary lead will boost lead prices.
Secondary lead capacity totaled 400,000 tpy in Shandong that produces 180,000 tonnes in 2014 with 15,000 tonnes per month. Jiangsu sees the capacity at 390,000 tpy with production at 240,000 tonnes in 2014 and 20,000 tonnes per month.
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