SHANGHAI, Jun 14 (SMM) – The average operating rate across primary lead smelters across Henan, Hunan and Yunnan remained unchanged from the previous week to stand at 60.6% between June 10-14. Rates for the three regions all held stable this week.
While concentrated maintenance at smelters in June lowered supplies across the market, spot lead quotes declined this week as sluggish end-market consumption deterred downstream consumers from purchasing.
Offers from primary lead smelters fell from a spread of zero to a discount of 30-50 yuan/mt against the average price of SMM 1# lead, while traders quoted a discount of 20-30 yuan/mt against the SHFE 1907 contract for some common domestic brands.
Secondary lead smelters also lowered their offers, with a wider discount of 150-200 yuan/mt against prices of primary materials.
Continued weakness in consumption will weigh on lead prices in the short run.