Weekly primary lead smelter operating rate dipped 1 percentage point to 56.8%

SHANGHAI, Nov 8 (SMM) – Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 56.8% in the week ending November 8, down 1 percentage point from the previous week, according to an SMM survey.

Operating rates at Yunnan and Hunan were unchanged at 43.8% and 45.5%, respectively, while the rate at Henan slipped 1.9 percentage points to 68.3% as production at Xinling smelter shrank.

The refining stage at Xinling felt the impact from the repair at the smelting stage which started in late October, as existing raw material stocks were depleted.

Production decline at Xinling, meanwhile, was offset by production recovery at Jinli who had concluded maintenance.

Primary lead supply pressure is likely to be hefty in the fourth quarter, as higher treatment charges for lead concentrate have improved smelter margins and major smelters will rush to meet annual production targets with the year 2019 drawing to a close.