SHANGHAI, Mar 13 (SMM) – Operation rates across lead concentrate producers in China extended their decline in February as inclement weather suspended mines in high altitudes, and as workers left for the Lunar New Year holiday.
The average operating rate across 86 lead concentrate producers, with capacity of 767,000 mt/year, fell to 24.2% in February, down 5.9 percentage points from a month earlier, an SMM survey showed.
Rates across large producers with annual capacity of more than 10,000 mt fell 2.5 percentage points last month, to 22.2%. CNY closure across miners in Hunan and Guanxgi provinces accounted for the decline.
Rates across medium-sized producers with annual capacity of 5,000-10,000 mt lost 8.2 percentage points, to 31.6%. Maintenance and the holiday factor at some mines in Guangxi and high in-plant inventories at miners in Inner Mongolia affected output.
Rates across small producers with annual capacity of less than 5,000 mt lost 26.9 percentage points, to 20.3% in February. Small mines took longer breaks for CNY, and generated little output last month.
Seasonal suspension at mines in high altitudes will end in March. This, together with more working days in the month, will nudge up the operating rate across lead concentrate producers this month.
