Annual targets drive primary lead smelters to operate at higher levels in Nov

SHANGHAI, Dec 10 (SMM) – Operating rates across Chinese primary lead smelters averaged 63.1% in November, up 2.28 percentage points from October, SMM data showed.

Despite smog-alert curbs, three large smelters in Henan province’s Jiyuan city stepped up their output to meet annual production and sales targets, as the year drew to a close. The curbs targeted the crude lead production stage and smelters purchased crude lead to support their output of refined materials.

This grew the average operating rate across smelters with annual capacity greater than 100,000 mt by 3.51 percentage points in November, coming in at 72.96%.

Rates across plants with annual capacity of 50,000-100,000 mt increased by 2.01 percentage points to 58.5% last month as recovered output at Liaoning Haicheng exceeded suspended volumes at other plants, triggered by maintenance works.

The end of maintenance at some smelters and a rush to meet annual targets are expected to extend the gains in operating rates across primary lead smelters in December. The average rate is estimated to rise 3.52 percentage points to 66.62% this month.