Primary lead smelter operating rate dipped on lower production in Hunan

Published: Nov 29, 2019 16:59
Hunan contributed to the dip in the average operating rate, due to a production cut at Yuteng smelter

SHANGHAI, Nov 29 (SMM) – Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 57.9% in the week ending November 29, down 0.4 percentage point from the previous week, according to an SMM survey.

Hunan contributed to the dip in the average operating rate, due to a production cut at Yuteng smelter which is expected to extend into December. Primary lead smelters in Hunan operated at a rate of 44.3% this week, down 1.2 percentage points from the prior week.

Operating rates at Yunnan and Henan remained unchanged at 43.8% and 71.3%, respectively.

Henan activated an orange alert for smog on November 29, requiring some smelters to cut capacity of the smelting stage by 20-30%. This is likely to have little impact on production of refined lead, given sufficient stocks of lead bullion.

The Chinese lead market is likely to face stronger supply pressure in the coming month, as improved profits on higher treatment charges will encourage smelters to step up production, especially at year-end when smelters tend to rush to fulfill annual production targets.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
14 hours ago
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Read More
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses
Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.
14 hours ago
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
14 hours ago
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
Read More
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"
Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.
14 hours ago
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
14 hours ago
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
Read More
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt
The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.
14 hours ago