SHANGHAI, Jul 26 (SMM) – Secondary refined lead supply in Jiangxi province is likely to edge up as the imminent recovery of lead-acid battery production is set to bolster lead consumption, SMM believes.
The increase in secondary refined lead supply may be limited as recent, weak lead prices thinned profit margins across smelters.
Some 600-700 mt of daily output of secondary refined lead supply has resumed across the region so far after some smelters recovered production from equipment maintenance last week. SMM expects supplies to gain 200-300 mt per day as of early August.
Most secondary lead producers in Jiangxi suspended operation during the month-long environmental reviews by the central government in June, and gradually resumed in July.
The government of Yichun city launched its own environmental probes on lead-acid battery plants earlier this month. This hamperedd the recovery of secondary lead production as smelters worried that lead consumption would be affected and that they would be involved in the probes.