China’s output of primary lead gain 8% YoY in Jan

SHANGHAI, Feb 15 (SMM) – China’s production of primary lead stood at 274,000 mt in January, down 1.2% on the month but up 8.44% on the year, showed an SMM survey.

Most primary lead smelters returned to normal production in January after they operated at full, or even overload capacity in December to meet annual production and sales targets. This accounted for the month-on-month decline in production.

Operating rates across primary lead smelters remained high last month as the use of imported crude lead shortened the production cycle of primary lead.

Winter production curbs across the northern regions, smog-alert curbs in Hebei, environmental probes in Hunan and Yunnan lowered production of primary lead in January 2018.

The government scrapped "blanket production cuts" on heavy industries this winter, allowing local authorities to impose measures based on regional emission levels. Primary lead production saw less impact from environmental protection drives in January 2019, resulting substantial growth from a year earlier.

While most large primary lead smelters maintained regular production during the Lunar New Year holiday, output of primary lead in China is expected to fall by over 40,000 mt to 233,000 mt in February as small and medium-sized smelters in Hunan, Yunnan and Henan suspended for the holidays. Maintenance at some smelters including Hunan Yuteng, Silver Star, Henan Qinling and Yunnan Zhenxing would also affect production.