SHANGHAI, Aug 28 (SMM) – Profits of secondary lead recovered to 200-300 yuan/mt as of Monday as lead prices surged, SMM research found.
Secondary lead prices jumped 825 yuan/mt over the week ended August 27 while battery scrap prices increased by only 250 yuan/mt. This helped to widen profit margins for secondary lead smelters.
As lead prices strengthened from Thursday, traders of battery scrap became keen to offload cargoes. Large-scale smelters, however, purchased raw materials cautiously as stock levels were high, and just raised purchasing prices slightly.
Production enthusiasm across smelters is likely to grow if lead prices remain at current levels or extend their gains this week.