China primary lead production extended increase by 3% in December

SHANGHAI, Jan 8 (SMM) – Primary lead output in China extended its increase in December as most smelters ramped up production on the back of the continued increase in treatment charges (TCs) of lead concentrate.

SMM data showed that domestic output of primary lead stood at 280,000 mt in December, 3% higher from a month ago. The full-year production was up 0.86% from 2018.

Resumption of Henan Xinling and Jiangxi Jinde from maintenance also contributed to the higher output in December. Frequent occurrence of smog alert in Henan province slightly impacted output at some plants, but production at large smelters was unaffected given sufficient stockpiles of crude lead. 

SMM assessments indicated that the monthly TCs for domestic 50% Pb lead concentrate have climbed for the fourth consecutive month, to 2,300 yuan/mt in January, 150 yuan/mt higher from a month ago (both on a metal content basis).

SMM expects China’s production of primary lead to fall more than 20,000 mt on the month in January as medium-sized and small smelters will close for about a week for the Chinese New Year holiday, even as large-scale producers will maintain normal operation during the period. Smelters including Hunan Yuteng and Yunnan Zhenxing planned for equipment maintenance during the holiday, which will also weigh on overall output in January.