Environmental issues, maintenance to lower Nov operating rates at secondary lead smelters

SHANGHAI, Nov 27 (SMM) – Maintenance and environmental issues are likely to further weigh on operating rates across domestic secondary lead smelters in November, after a drop of 2.4 percentage points month on month in October. 

The rate in November is expected to fall 1.9 percentage points from October, to 51.37%, SMM research found. Lower operating rate will also decline output of secondary lead this month, to 145,900 mt, down 5,400 mt from October, an SMM survey found. 

From late October, Beijing-led inspection teams started to station in provinces of Henan, Guizhou, and Hunan for the second round of environmental review. This, coupled with occurrence of heavy smog in the northern provinces of Henan and Hebei this month, affected production of local secondary smelters. 

Thin profit margins also depressed producing enthusiasm across secondary smelters, especially those unlicensed ones, SMM learned.  

As of Friday November 23, secondary lead smelter Guangxi Zhicheng delayed its restart; Jiangsu Huaxing suspended for facility upgrading and is likely to recover in December. Maintenance at Anhui Huaxin continued.