[SMM investigation] how much does the production restriction of lead smelter increase the influence of lead price on the weather of heavy pollution in many places?-Shanghai Metals Market

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[SMM investigation] how much does the production restriction of lead smelter increase the influence of lead price on the weather of heavy pollution in many places?

Translation 05:57:45PM Nov 15, 2018 Source:SMM
The content below was translated by Tencent automatically for reference.

SMM11, 15 March: recently, there have been many polluted weather in Henan Province. Among them, Jiyuan and Anyang in Henan Province are the concentrated areas of lead smelting, and the yellow early warning of heavy pollution weather has been launched since the beginning of the week. According to the requirements of the discharge restriction documents, the output of electric lead in direct refineries and refineries is limited by 10%, and the plastic granulation system in recycled lead plants is shut down, etc., in order to ensure that the total daily emission of pollutants automatically monitored after emergency response is 10% lower than that on November 9. However, because the production of the main lead smelting enterprises has not reached the full production state in the early stage, it has been within the range of emission restriction, so for the lead market, there has not been a significant reduction in supply.

On November 15, the northern region entered the heating season. According to the experience of previous years, the Ecological Environmental Protection Bureau and local governments will issue corresponding production restriction policies for different degrees of air pollution, but according to SMM, at present, for the lead industry, The impact of environmental protection is relatively limited.

Throughout the recent environmental protection policy, compared with the previous period, the impact on smelter production is limited, behind the logic or in the domestic economic data for several months in a row, "one-size-fits-all" treatment may become a thing of the past. The impact of environmental protection on lead prices, SMM believes, is mainly concerned with the intensity of environmental inspection, the impact on smelter production, and the duration of the impact. Air pollution has uncontrollable factors, and the intensity of environmental protection will be adjusted at any time with the change of the degree of pollution.

Li Jun of Guangzhou Futures Company believes that because there are still non-standard small workshops in China using recycled lead to produce lead-acid batteries, the non-standard process will cause serious pollution to the environment, so when environmental protection inspection occurs, The production of recycled lead will be affected, and demand for primary lead will be boosted, which will be good for lead prices.

Review

At the beginning of the year, the comprehensive control of air pollution in North China, the rectification and reform of Anhui industrial parks, and the central environmental protection supervision team carried out "looking back" work in various provinces, especially for the "three No" smelters of recycled lead, the production was quite limited. Since the middle and late March, the domestic environmental protection policy has been upgraded. In the process of environmental protection inspection, the production of recycled lead enterprises has been affected one after another, and has been ordered to reduce production, stop production for rectification, or carry out technological upgrading and transformation. And after the completion of the technical transformation to be re-evaluated.

Impact of Environmental Protection on lead Industry in the first seven months of 2018

Under the heavy pressure of environmental protection, the impact on large enterprises is not very great, but for small enterprises, it is undoubtedly a "disaster of extinction," and production reduction and shutdown have become the norm, especially since the beginning of May this year, due to the grim situation of central environmental protection supervision and inspection. The start-up of multi-land recycled lead refineries is limited, and the regional shortage of recycled lead occurs during the period. At the same time, the price of lead continued to strengthen due to tight supply, and the price of recycled lead followed the rise in lead prices due to tight supply.

In August, the supervision and inspection team was stationed in 11 cities in the Fen-Wei Plain, and from 2018 to 2019, the key areas of the Blue Sky Defense War intensified supervision and inspection into the second stage, in accordance with the requirements of the work programme. 200 supervision groups inspected 216 counties (cities and districts) in Beijing, Tianjin and Hebei and the surrounding "226" cities, and found 49 gas-related environmental problems. 90 supervision groups inspected 83 counties (cities and districts) in 11 cities of Fen-Wei plain and found 89 gas-related environmental problems.

According to the survey, the distribution of lead smelting enterprises in this area is relatively small, and lead production accounts for less than 5% of the country's total production capacity, so the impact of this action on lead supply is relatively limited.

The proportion of metal-related smelting capacity in the 11 cities is as follows:

The following is the progress of environmental supervision and inspection in various places surveyed by SMM so far:

[SMM investigation] how much does the production restriction of lead smelter increase the influence of lead price on the weather of heavy pollution in many places?

Translation 05:57:45PM Nov 15, 2018 Source:SMM
The content below was translated by Tencent automatically for reference.

SMM11, 15 March: recently, there have been many polluted weather in Henan Province. Among them, Jiyuan and Anyang in Henan Province are the concentrated areas of lead smelting, and the yellow early warning of heavy pollution weather has been launched since the beginning of the week. According to the requirements of the discharge restriction documents, the output of electric lead in direct refineries and refineries is limited by 10%, and the plastic granulation system in recycled lead plants is shut down, etc., in order to ensure that the total daily emission of pollutants automatically monitored after emergency response is 10% lower than that on November 9. However, because the production of the main lead smelting enterprises has not reached the full production state in the early stage, it has been within the range of emission restriction, so for the lead market, there has not been a significant reduction in supply.

On November 15, the northern region entered the heating season. According to the experience of previous years, the Ecological Environmental Protection Bureau and local governments will issue corresponding production restriction policies for different degrees of air pollution, but according to SMM, at present, for the lead industry, The impact of environmental protection is relatively limited.

Throughout the recent environmental protection policy, compared with the previous period, the impact on smelter production is limited, behind the logic or in the domestic economic data for several months in a row, "one-size-fits-all" treatment may become a thing of the past. The impact of environmental protection on lead prices, SMM believes, is mainly concerned with the intensity of environmental inspection, the impact on smelter production, and the duration of the impact. Air pollution has uncontrollable factors, and the intensity of environmental protection will be adjusted at any time with the change of the degree of pollution.

Li Jun of Guangzhou Futures Company believes that because there are still non-standard small workshops in China using recycled lead to produce lead-acid batteries, the non-standard process will cause serious pollution to the environment, so when environmental protection inspection occurs, The production of recycled lead will be affected, and demand for primary lead will be boosted, which will be good for lead prices.

Review

At the beginning of the year, the comprehensive control of air pollution in North China, the rectification and reform of Anhui industrial parks, and the central environmental protection supervision team carried out "looking back" work in various provinces, especially for the "three No" smelters of recycled lead, the production was quite limited. Since the middle and late March, the domestic environmental protection policy has been upgraded. In the process of environmental protection inspection, the production of recycled lead enterprises has been affected one after another, and has been ordered to reduce production, stop production for rectification, or carry out technological upgrading and transformation. And after the completion of the technical transformation to be re-evaluated.

Impact of Environmental Protection on lead Industry in the first seven months of 2018

Under the heavy pressure of environmental protection, the impact on large enterprises is not very great, but for small enterprises, it is undoubtedly a "disaster of extinction," and production reduction and shutdown have become the norm, especially since the beginning of May this year, due to the grim situation of central environmental protection supervision and inspection. The start-up of multi-land recycled lead refineries is limited, and the regional shortage of recycled lead occurs during the period. At the same time, the price of lead continued to strengthen due to tight supply, and the price of recycled lead followed the rise in lead prices due to tight supply.

In August, the supervision and inspection team was stationed in 11 cities in the Fen-Wei Plain, and from 2018 to 2019, the key areas of the Blue Sky Defense War intensified supervision and inspection into the second stage, in accordance with the requirements of the work programme. 200 supervision groups inspected 216 counties (cities and districts) in Beijing, Tianjin and Hebei and the surrounding "226" cities, and found 49 gas-related environmental problems. 90 supervision groups inspected 83 counties (cities and districts) in 11 cities of Fen-Wei plain and found 89 gas-related environmental problems.

According to the survey, the distribution of lead smelting enterprises in this area is relatively small, and lead production accounts for less than 5% of the country's total production capacity, so the impact of this action on lead supply is relatively limited.

The proportion of metal-related smelting capacity in the 11 cities is as follows:

The following is the progress of environmental supervision and inspection in various places surveyed by SMM so far: