SHANGHAI, Jul 13 (SMM) – Broad-based environmental reviews by the central government lowered the operating rate across Chinese primary lead smelters in June, SMM research found.
The rate came in at 56.4% in June, down 3.3 percentage points from May and 3.04 percentage points year on year, SMM data showed.
In June, inspectors from the central government settled into Henan, Yunnan, Guangxi and Hunan provinces for a month-long review of the rectification works for previous environmental issues. Air pollution resulted in production cuts of 30-50% across some smelters in Jiyuan city, Henan.
Smelters in Anhui and Inner Mongolia provinces undertook maintenance and this also affected production of primary lead.
We expect the rate to increase to 61.5% in July as primary lead production grows after inspectors depart.