SHANGHAI, Oct 31 (SMM) – Slower demand from downstream battery plants and smaller profits at secondary smelters are likely to lower operating rates across those smelters in October, SMM believes.
We expect operating rates across secondary smelters to average 51.16% in October, down 4.51 percentage points from September.
Production of secondary lead will also fall by 12,800 mt on the month to 145,300 mt in October, SMM forecasts.
Falling prices of lead from the second half of September accounted for the smaller profits. As of October 30, smelting profits for secondary lead stood only at around 200 yuan/mt, and affcted production enthusiasm across medium-sized and small producers.
While transactions in the spot lead market weakened after the National day holiday, sufficient supplies of secondary products further depressed trades and prices, SMM learned.
Environmental probes in Anhui and Guizhou provinces in October also accounted for the lower operating rate. October maintenance at Jiangsu Huaxiang and Anhui Huaxin significantly affected overall output this month, SMM learned.
