Maintenance, weak consumption lowers Oct operating rates at secondary lead smelters

SHANGHAI, Nov 15 (SMM) – Operating rates across Chinese secondary lead smelters fell 2.4 percentage points from September to stand at 53.27% in October. China produced 151,300 mt of secondary lead fin October, down 6,800 mt month on month, SMM data showed.

In October, Anhui Huaxin undertook maintenance and Jiangsu Huaxiang began technological upgrading that is likely to last for two months. Suspended operation at the two large smelters lowered average operating rates and overall output.

Downstream consumption began to weaken from the middle of October after consumers completed their backlogged orders received before the National Day holiday. This eroded production enthusiasm among smelters.

Production enthusiasm among secondary lead smelters further waned in November as the lead-acid battery market headed into its traditional low season and as profit margins remain poor. November is likely to see less secondary lead output, especially across smelters without production licences.

Environmental probes launched by the central government earlier this month and winter production curbs across the north are also likely to weigh on operation at smelters.

This month, Shandong Zhongqing began maintenance for two weeks while Jiangsu Huaxiang continued its technological upgrading. Continued environmental probes deterred Anhui Huaxin from recovering output. New capacity at Anhui Huabo will ramp up output and this will offset some losses in output.