Primary lead smelters operating rates dipped as Yuguang cut output

SHANGHAI, Feb 21 (SMM) – Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 43.9% in the week ended February 21, down 0.6 percentage point from the previous week, showed an SMM survey.

In Henan, the operating rate fell 4.8 percentage points to 57.8% this week, as the large smelter—Yuguang—slashed its daily output due to shortages of sulfuric acid storage capacity and raw material supply. Smelters like Shibin and Honghe Zhenxing are expected to remain shut till March.

The SMM survey also showed that logistics in Henan improved from last week, easing finished goods inventory pressure at smelters and lifting trades across the markets.

Hunan’s Yuteng recovered from maintenance this week, lifting weekly operating rates at primary lead smelters across the region by 6.2 percentage points to 34.2%.

The operating rate in Yunnan remained unchanged at 22.5%.