SHANGHAI, Nov 20 (SMM) – Average operating rate across domestic lead concentrate producers is expected to fall 13 percentage points from October to 61% in November, an SMM survey found.
Poor weather in regions of high altitude such as Tibet and Inner Mongolia caused production cuts or suspension, and this accounted for the sharp month-on-month decline in rates across large mills. For large producers with annual capacity above 10,000 mt, operating rate averages 58.5% in November, down 18 percentage points from October, SMM expects. Negative weather in high altitude regions such as Tibet and Inner Mongolia caused production cuts or suspension, and this accounted for the sharp month-on-month decline in large mills’ operating rates.
Medium-sized plants, with an annual capacity of 5,000-10,000 mt, are likely to operate at a stable r72.4% this month. While the weather in Xinjiang affected production, a mining company in Sichuan resumed after maintenance. Another in Qinghai also raised production this month after it acquired some small mills, SMM learned.
Production curbs in Fujian province will lower the operating rate across small mining companies, by 8 percentage points from October, to 50.5% this month. Those plants have an annual capacity below 5,000 mt.
SMM surveyed 86 companies of various scales, covering an annual capacity of 767,000 mt.
