SHANGHAI, Jul 19 (SMM) – Licensed smelters of secondary lead in China operated at higher rates this week as a lead price rally and limited increases in battery scrap prices improved profits at smelters, an SMM survey showed on Friday July 19.
Operating rates across licensed smelters of secondary lead across Anhui, Henan and Jiangsu provinces averaged 54.9% in the week ended July 19, up 4.1 percentage points from the prior week, SMM data showed.
High production at Anhui Huabo’s phase-two line bolstered the average rate across Anhui’s smelters by 17.1 percentage points on the week, to 55.1%. SMM learned that daily output of secondary lead at Anhui Huabo stood at 1,200-1,300 mt this week, with a line in operation as high costs suspended the other line.
The average rate in Henan lost 3.4 percentage points from a week ago, to stand at 64.4%, as local smelter Henan Jinpeng remained in maintenance. Environmental probes within the province are expected to keep the smelter closed until August.
Operating rates across smelters in Jiangsu remained unchanged at 50% this week.
Higher margins at secondary lead smelters and continued sluggish downstream demand grew discounts of secondary lead, which further dragged on discounts of secondary refined lead.
As of Friday July 19, trades of secondary refined lead occurred at a discount of 200 yuan/mt, ex-works with taxes included, against the average price of SMM #1 lead, with some offers down to a discount of 350 yuan/mt.
