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Henan Faces Dilemma in Secondary Lead Market
Jan 14, 2016 15:30Source:SMM
Both purchase of scrap batteries and sales of secondary lead got in a dilemma in Henan recently.
SHANGHAI, Jan. 14 (SMM) – Both purchase of scrap batteries and sales of secondary lead got in a dilemma in Henan recently, throwing secondary lead smelters there into troubles.
Mainstream prices for secondary lead were at 11,350 yuan per tonne in Henan on Jan. 14 while procurement prices were at 7,250-7,300 yuan per tonne and 6,700-6,750 yuan per tonne respectively for scrap motive batteries and automobile batteries (white shell).
Local secondary lead prices were already in a low level but scrap battery purchase prices were among highest in China, leaving thin profits for producers.
Local disqualified secondary lead smelters kept high operating rates, tightening scrap battery supply in market. This allowed scrap battery prices to hold firm. Secondary lead prices were 50-100 yuan per tonne higher in Shandong and Hebei than in Henan but transport costs discourage buyers in those two regions to purchase in Henan, which failed to boost trading in Henan.
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