News from SMM7 on the 15th of July
According to the (SMM) survey of Shanghai Nonferrous Network, in June 2019, the operating rate of SMM primary lead smelter in China was 56.21%, down 7.84% from May and 0.14% from the same period last year. The survey involved 46 enterprises and a production capacity of 4.691 million tons. (in this survey, the operation rate of the primary lead smelter was revised to 64.05% in May, of which the output of Chuangyuan Economic and Trade Co., Ltd., Gejiu City, Yunnan Province, was revised.)
According to SMM research, in June, the maintenance of primary lead smelting enterprises was concentrated, and most of them were medium and large enterprises, and their output had a greater impact; at the same time, in late June, Henan and other places were aggravated by the influence of heavy pollution weather, and the leading Group Office of Jiyuan Municipal pollution Prevention and Control War issued a notice on further strengthening air pollution control in June, with a control period from now until July 10, 2019. In response to environmental control, and taking into account equipment problems, Henan Yuguang and Minshan have entered maintenance one after another, expanding the decline in lead production in the current month, so the month-on-month decline in the start-up rate is slightly greater than the expected value of the previous report. In addition, compared with the same period last year, in June 2018, the Central Environmental Protection Supervision team launched a month-long "look back" work in Henan, Hunan, Yunnan, and other places, and the Jiyuan area of Henan Province imposed a production limit of 30 to 50 percent on key enterprises in respect of moderately and slightly polluted weather, and refinery production was generally restricted. This year, the central government issued a document banning one-size-fits-all behavior and centralized shutdown, in addition to the improvement of the environmental protection level of major enterprises. The impact of environmental protection on the lead industry has declined compared with last year.
Looking forward to July, according to SMM, Hunan Jingui, Chifeng Mountain Gold, Silver and lead, Western Mining, Shandong Hengbang and other enterprises have ended one after another, but due to the downturn in the lead market, some enterprises do not consider full production. In addition, Henan Yuguang, Minshan and other repairs run through June-July, and most of the output has increased or decreased in July. SMM expects the start-up rate of primary lead to increase by 1.5 per cent in July from a month earlier. According to the latest research by SMM, production is planned to resume in Minshan, Henan Province, on July 20, and around July 7, production will resume in the south of Hechi, Guangxi.
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