SMM expects domestic production of primary lead to extend a rally in Nov

Shanghai-bonded zinc stocks continued to fall on outbound shipments

SHANGHAI, Nov 8 (SMM) &ndash;&nbsp;Primary lead output in China rebounded as expected in October as a slew of smelters recovered from maintenance, which included Jiangxi Copper, Xing&rsquo;an Silver &amp; Lead and Yunnan Mengzi. The supply growth from resumption exceeded 15,000 mt, SMM assessed.&nbsp;

SMM data showed that domestic output of primary lead stood at 261,000 mt in October, up 4.6% from <a href="https://news.metal.com/newscontent/100980413/Exclusive:-China's-base-metals-output-in-Sep/">September </a>and 2.2% from October 2018. Production in the first ten months of this year was 0.7% higher than the same period a year ago.

Emergency alerts for heavy pollution weather at the start and end of October in north China limitedly affected output as major producers had in-plant stocks of crude lead, the feedstock to produce refined lead. SMM learned that some smelters in Hebei and Henan provinces faced production curbs over the smog-alert period last month.&nbsp;

SMM expects domestic production of primary lead to extend a rally in November, as Henan Jinli, Xing&rsquo;an Silver &amp; Lead and Haicheng Chengxin resume after overhaul.&nbsp;

Greater inflows of seaborne lead concentrate lifted quotes of treatment charges (TCs) to $90-120/dmt for Pb 60% lead concentrate for November. This will improve margins at lead smelters and encourage their production enthusiasm despite weakness in lead prices.&nbsp;

SMM assessments indicated that, as of November 8, TCs for domestic Pb 50% lead concentrate stood at 2,000 yuan/mt, with a high of 2,200 yuan/mt, both on a metal content basis.&nbsp;

Scheduled maintenance at Hunan Jingui, Henan Xinling, and Yunnan Chihong will cap the increase in primary lead output in November.&nbsp;