Thin Profits Weaken Enthusiasm at China Secondary Lead Producers

SHANGHAI, Jan. 4 (SMM) – Parts of Chinese secondary lead producers cut or suspend operation recently while those producers ran at full capacity previously, SMM learns.

Narrowing profits are behind declines in secondary lead smelters’ operating rates. Secondary lead mainly trade at 11,550-11,600 yuan per tonne at present, up 200 yuan per tonne from early December. In the same period, scarp battery prices grew by 150 yuan per tonne, leaving limited profits for smelters.

Reduction in by-product prices should also be blamed. Currently, Abs plastic shells for motive bikes are offered at 5300-5500 yuan per tonne and white and black plastic shell for auto trade at 3600 yuan per tonne, versus as high as 8,000 yuan per tonne for white shell previously.

Many lead smelters in Shandong, Henan and Anhui are more willing to halt operation because of environmental protection crackdowns, thin profits and ahead of China’s New Year holiday 2016.  

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