Maintenance to lower operating rates across primary lead smelters in Apr

SHANGHAI, Apr 17 (SMM) – SMM expects operating rates across smelters of primary lead to decline 0.43 percentage point from March to 65.05% in April as Anhui Tongguan, Yunnan Chihong, and Chifengshan Gold Silver & Lead begin maintenance. Other primary smelters will maintain regular operation in April. 

A longer month and the recovery at smelters of Hunan Yuteng and Yinxing from maintenance, buoyed operating rates across primary smelters by 8 percentage points on the month to 65.49% in March, according to an SMM survey of 46 smelters. Smelters raised output except for Henan Xinling, which suspended for maintenance in March.

Year on year, operating rates gained 7.49 percentage points in March, and this bolstered production of primary lead compared with March 2018. Smelters of Yuguang, Wanyang, Nanfang, Jiangxi Copper, and Humon undertook maintenance for 20-45 days in March 2018. This, together with heavy air pollution in Henan that affected local operation, resulted in the low base in March 2018, which also accounted for the output growth last month. 

Operating rates across large smelters with an annual capacity above 100,000 mt gained 4.86 percentage points on the month to 74.45% in March as smelters moved up a gear after CNY closure. A greater number of working days also lifted rates. 

Operating rates across medium-sized smelters with an annual capacity between 50,000-100,000 mt advanced 10.5 percentage points month on month to 63.47% as smelters of Hunan Yuteng and Yinxing came back online. 

The resumption in March also raised the operating rate across small smelters with an annual capacity below 50,000 mt by 9.63 percentage points from February to 37.53%.