SHANGHAI, Jan. 12(SMM) – Lots of disqualified secondary lead smelters shut down last week in Hebei while this week almost all secondary lead producers there are closed due to stricter environmental protection crackdowns.

Thin profits also weaken producing enthusiasm at producers in Henan. Secondary lead quoted at 11,350 yuan per tonne (excluding tax) on January 12 while procurement prices were at 7,300 yuan per tonne and 6,750 yuan per tonne, respectively. As such, most smelters there turn more willing to take vacation ahead of schedule.

A cluster of smelters in Jiangxi and Guangdong also plan to halt operation, mostly due in January 15-25, for 2016 Chinese New Year holiday. Producers already halting operation will unlikely resume operation before holiday. Besides, an increasing number of smelters will suspend production, leading to supply tightness. On the other hand, downstream medium and small also tend to start vacation in advance. This leaves overall supply and demand muted. 

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