SHANGHAI, Sep 3 (SMM) – Fewer purchases dragged down the price of secondary lead 100-200 yuan/mt in north China than prices across the south. However, the spread is unlikely to sustain as higher consumption in the north is expected from the downstream battery industry in September, SMM believes.
As of September 3, prices in northern cities like Henan and Hebei provinces stood at 16,950-17,050 yuan/mt, but at 17,100-17,200 yuan/mt in the southern city of Guangdong.
Surging prices of lead at the end of August drove up prices of secondary lead in north China and this deterred refined lead plants from purchasing. In the south, however, refined lead producers purchased secondary lead actively as supplies were tight. Only a few small secondary smelters resumed operation last week when profits improved.
Secondary lead consumption in north China is set to receive a boost from the downstream battery industry in September. This will narrow the north-south price gap. Meanwhile, supply shortages in the south is likely to ease as improving profits encourage more secondary smelters in Jiangxi and Hunan provinces to resume production.