Thinner margins to further weigh on secondary lead supply

Published: Aug 22, 2018 18:26

Save

Supplies of secondary lead are likely to tighten for the rest of Aug, as thinner margins erode production enthusiasm

SHANGHAI, Aug 22 (SMM) – Supplies of secondary lead are likely to tighten for the rest of August, as thinner margins erode production enthusiasm across secondary lead smelters.

In Henan, two medium-sized secondary lead smelters suspended as of August 22. This lowered daily production in the area by 500-600 mt from early July. Most small secondary smelters have suspended from the end of July. Operating mills currently operate at 40-50% of capacity, SMM learned.

Price of battery scrap that fell slower than lead prices accounted for smaller profits from the start of July. As of Wednesday August 22, prices of secondary refined lead weakened some 3,275 yuan/mt from early July, and prices of battery scrap fell around 775 yuan/mt.

As of August 22, SMM prices of secondary refined lead stood at 17,650-17,800 yuan/mt, and prices of electric vehicle waste batteries stood at 9,650-9,800 yuan/mt.

In Henan province, offers for secondary refined lead exceeded those of primary lead as secondary lead smelters held back. However, SMM retains its view that such premiums are unlikely to last much longer, as the smaller price advantage of secondary materials received little downstream demand.

Market commentary Secondary lead

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

9 hours ago

Tianjin Sabo Recalls 100 E-Bikes Over Safety Concerns

[Lead-Acid Battery End-Use Market Update] Recently, in accordance with the requirements of the Interim Provisions on the Administration of Consumer Product Recalls, Tianjin Sabo Vehicle Co., Ltd. voluntarily submitted a recall plan to the Tianjin Municipal Administration for Market Regulation and will recall, effective immediately, 100 units of the Jiebao Da Wangpai model TDT200Z e-bikes manufactured during the period up to December 31, 2023.

9 hours ago

Dragged Down by Broad Losses in Base Metals, Lead Prices Closed Lower Intraday [Lead Futures Brief Review]

9 hours ago

Chilwee Group Reports Strong Sales of Sodium-Ion Batteries, Expands Production and Opens First Store

[Lead-Acid Battery Enterprise Updates] Chilwee Group recently disclosed that after the large-scale commissioning of its sodium-ion batteries, they have continued to sell strongly, with all orders for this year already locked in. Its two existing production lines have been operating at full capacity, and eight additional production lines have entered the installation and commissioning stage. At present, the company has 4.5 Gwh of sodium-ion battery capacity and opened its first directly operated sodium-ion battery store in 2025, attempting to directly encourage end-use consumers to replace the lead-acid or lithium batteries in some two-wheeler models with sodium-ion batteries.

9 hours ago