SHANGHAI, Dec 13 (SMM) – Maintenance and environmental issues extended the decline in operating rates across domestic secondary lead smelters in November, after a drop of 2.4 percentage points in October.
The rate in November fell more than expected, by 2.72 percentage points from October, to 50.55%, SMM research found. Lower operating rates also reduced the output of secondary lead last month, to 143,600 mt, down 7,700 mt from October, SMM data showed.
The rates across large plants with annual capacity greater than 100,000 mt dropped by 2.7 percentage points to stand at 55.86% in November. Two weeks of maintenance at Shandong Zhongqing dragged on rates. Anhui Huaxing and Jiangsu Huaxiang remained offline for technical reformation. Annual targets accounted for higher production at Zhejiang Tianneng, and this limited the overall decline in operating rates.
Operating rates at plants with annual capacity of 50,000-100,000 mt slid 3.66 percentage points to 38.51% last month as Yunnan Zhenxing suspended from November on a lack of permits. Environmental probes halved production at Anyang Jinpeng, and weak downstream demand lowered production at some other medium-sized secondary smelters.
However, operating rates across smaller plants with annual capacity below 50,000 mt rallied 5.26 percentage points and stood at 56.84% in November, as Tianjin Dongbang accelerated output.
