[SMM survey] seasonal shutdown near the end of May lead concentrate start-up rate 47.2 per cent

Published: Jun 20, 2019 16:32
According to the (SMM) survey of Shanghai Color Network, the starting rate of lead concentrate in May was 47.2%, up 1.6% from last month. The survey involved 86 enterprises with a production capacity of 767000 tons.

SMM, June 20 / PRNewswire-Asianet /-

According to the (SMM) survey of Shanghai Color Network, the starting rate of lead concentrate in May was 47.2%, up 1.6% from last month. The survey involved 86 enterprises with a production capacity of 767000 tons.

According to SMM research, the lead concentrate start-up rate continued to rise in May, mainly due to warmer weather, seasonal resumption of production, coupled with the mining recovery of some mining enterprises in Heilongjiang. According to the size of mining enterprises, the specific reasons are as follows:

The operating rate of large mining enterprises with an annual production capacity of more than 10,000 tons has dropped slightly by 0.3 percentage points to 42.3% compared with the previous month. Among them, mining enterprises in high altitude areas such as Qinghai and Tibet are in the stage of resuming production or gradually releasing output, which is basically offset by the reduction caused by the decline of ore grade in Baoshan and other mining enterprises in Hunan Province and the reduction caused by maintenance in Baiyinnuoer and other mining enterprises in Chifeng City.

The operating rate of medium-sized mining enterprises with an annual capacity of 0.5000 tons to 10,000 tons rose 4.8 percentage points to 61.8 percent from the previous month, mainly due to the fact that mining enterprises in high altitude areas have gradually moved away from the seasonal shutdown stage.

The operating rate of small mining enterprises with an annual production capacity of less than 5000 tons rose 7.2 percentage points to 47.6 percent from the previous month. In addition to the above factors, some mining enterprises in Heilongjiang solved mining problems and returned production to normal levels, driving up the operating rate.

To sum up, the total output of lead concentrate runs along the upward channel in May. Looking forward to June, summer is gradually coming, and the number and output of mining enterprises in the north are increasing day by day, so the starting rate of lead concentrate is expected to continue to rise in June.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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