SMM 2017 Lead & Zinc Summit: Lead Ore Production to Reduce on Environmental Checks

Published: May 22, 2017 14:05
Stricter environmental checks will increase production cost at mines.

SHANGHAI, May (22) – How environmental protection inspection impacts production at mines? See answers on SMM 2017 Lead & Zinc Summit held on May 20.

SMM: China launched stricter environmental checks in 2017. Will environmental protection and safety inspection impact mines’ production this year, or even for years?

One large mine in southwest China indicated that local governments pay close attention on environmental protection and call mines to rectify frequently, but mines don’t need to shut down with small problems. Enterprises also take it seriously, as output suspension will lead to more losses than gains, despite of rising workload and fund on environmental protection.

Local governments hope enterprises to reach environmental standard, and enterprises also wish to stay normal production, because output suspension, will reduce tax revenue at governments and bring losses at enterprises, leading to “lose-lose” result. Stricter environmental checks will increase production cost, such as it in water treatment, but it will make limited impact if enterprises have preparations.

Collections of Stories in Base Metal Market at SMM 2017 Lead&Zinc Summit

SMM: Where will TCs for lead concentrate go in the year?

TCs for lead concentrate will hold the level seen in late 2016 throughout 2017, as lead concentrate supply will remain tight in 2017, Zhang Liangliang foresees. Stricter environmental protection inspections lead to output halts at some small mines, reducing lead concentrate output.
For news cooperation, please contact us by email: sallyzhang@smm.cn orservice.en@smm.cn.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
18 hours ago
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Read More
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.
18 hours ago
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
18 hours ago
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
Read More
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.
18 hours ago
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
18 hours ago
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
Read More
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.
18 hours ago