Primary lead smelters operating rate dipped amid intensified smog alert in Henan

SHANGHAI, Dec 27 (SMM) – Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 59.6% in the week ending December 27, slightly lower from the 59.8% a week ago, according to a SMM survey.

The average rate in Henan slipped 0.4 percentage point on the week to 70.3% as smelters remained under production curbs for crude lead after Jiyuan city escalated smog alert to the highest level. But the production of refined lead was limited impacted due to sufficient stocks of crude lead.

Pollution alert in Henan also disrupted logistics operations, which grew inventories at local smelters. SMM expects production in Henan to resume to normal after the alert is lifted. 

Operating rates in Yunnan and Hunan remained unchanged on the week, standing at 43.8% and 51.6%, respectively. 

Primary lead smelters in other areas maintained stable operation this week. Yunnan Xiangyun Feilong and Henan Qinling plan to resume production before or after the 2020 Chinese New Year, SMM learned.