Primary lead smelters operating rate steadied at 59.8%

Published: Dec 20, 2019 12:09
Operating rates across primary lead smelters in Henan, Hunan and Yunnan averaged 59.8% in the week ending December 20

SHANGHAI, Dec 20 (SMM) – With the year drawing to a close, Chinese primary lead smelters appeared not to step up operations to rush to fulfill their annual targets as usual, as environmental restrictions have little impacted production this year.

Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 59.8% in the week ending December 20, remaining unchanged for a second straight week, according to an SMM survey.

The respective operating rates for the three regions also remained stable at 70.7% in Henan, 51.6% in Hunan and 43.8% in Yunnan.

This came despite further lower spot lead prices muting trades this week. Primary lead smelters relied on long-term contracts.

Persistent, healthy profits helped keep producing enthusiasm among primary lead smelters stable, after treatment charges for lead concentrate began an uptick since August.

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Primary lead smelters operating rate steadied at 59.8% - Shanghai Metals Market (SMM)