Primary smelters operate at lower rate in Oct

SHANGHAI, Nov 9 (SMM) – Operating rates across Chinese primary lead smelters dipped by 0.27 percentage point from September to 60.06% in October, standing 5.47 percentage points lower than the same period last year, SMM data showed. 

Lower rates across middle-sized smelters reduced overall operating rate. Smelters including Liaoning Haicheng and Henan Qinling underwent maintenance in October. This lowered operating rates across middle-sized primary smelters, with annual capacity of 50,000-100,000 mt, by 3.81 percentage points to 54.86%. 

Smelters with annual capacity greater than 100,000 mt operated at 69.45% in October, up 2.62 percentage points from September as Chihong Zinc & Germanium stepped up production to meet annual targets and as Jingui Silver recovered from maintenance. 

Operating rates across small plants with annual capacity below 50,000 mt also rose by 4.46 percentage points to 31.2% as Chuangyuan smelter in Gejiu of Yunnan province resumed operation after maintenance. 

SMM expects overall operating rates to inch up 0.26 percentage point to 60.32% in November as maintenance at some smelters ends and some begin maintenance. This is set to increase the output of primary lead.