Resumption after maintenance buoys weekly operating rates at primary lead smelters

SHANGHAI, Jul 26 (SMM) – Chinese primary lead smelters in Henan, Hunan and Yunnan provinces operated at an average higher rate this week as most smelters that underwent maintenance have recovered. 

Rates across primary lead smelters in the three provinces averaged 57.7% in the week through Friday July 26, up 1.8 percentage points from a week ago, an SMM survey showed.

Spot lead prices climbed this week with transactions picking up. Inventory pressure eased at downstream producers and distributors, while smelters maintained a discount of 50-150 yuan/mt for spot lead and at a discount of 300 yuan/mt for secondary refined lead. 

Henan Minshan smelter restarted this week, and Henan Yuguang started to charge raw materials into furnaces on Friday July 26, with a full recovery expected next week. Supply resumption is expected to slow the growth in lead prices next week. 

In the week to Friday July 26, primary smelters in Henan operated at an average rate of 72%, up 3.6 percentage points on the week. Rates across Yunnan smelters averaged 42.3%, and that for Hunan smelters 43.4%, unchanged from a week earlier.