Operating rates across primary lead smelters remain unchanged on week

Published: Jan 18, 2019 15:19
Rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 55.6% in the week through Jan 18

SHANGHAI, Jan 18 (SMM) – While spot lead prices fell below 18,000 yuan/mt, production across primary lead smelters held stable this week.

Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 55.6% in the week through January 18, unchanged from the previous week, SMM data showed.

Prices of spot lead fell below 18,000 yuan/mt this week. This prompted lead-acid battery plants to buy on dips. As discounts of secondary lead against primary materials shrank close to zero,and even flipped to premiums for some transactions, buyers turned to primary lead.

Primary lead smelters made more shipments this week and some even cleared their stocks.

Yunnan Zhenxing will begin maintenance next week. This is estimated to drag the average weekly operating rate across primary lead smelters in Henan, Hunan and Yunnan down 1.4 percentage points to 54.2%.

SMM also learned that smelters did not plan to suspend for Chinese New Year.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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Operating rates across primary lead smelters remain unchanged on week - Shanghai Metals Market (SMM)