Operating rates across primary lead smelters in Henan, Hunan and Yunnan gaine

Operating rates across licensed smelters of primary lead in Henan, Hunan and Yunnan averaged 50.9% in the week ended June 4, down 0.12 percentage point from the previous week, showed an SMM survey.

Raw materials prices mostly rose as global inflation increased in this post-pandemic era. In China, supply of lead concentrate and scrap materials is tight, while lead ingot inventories continue to build up. LME lead is expected to move between $2,050-2,300/mt in the second half of 2021, while SHFE lead between 14,350-16,500 yuan/mt, said Xia Wenming, SMM senior analyst of the lead industry.

Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces fell slightly from the previous week to 58.3% in the week ended April 2, showed an SMM survey.

Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces fell slightly from the previous week to 59.3% in the week ended March 26, showed an SMM survey.

Shanghai base metals fell broadly on Wednesday March 24. Copper shed 0.88%, aluminium weakened 0.5%, zinc fell 1.77%, nickel dropped 1.96% and tin plunged 2.31%, while lead added 0.3%.

The Development and Reform Commission of Inner Mongolia Autonomous Region, the Department of Industry and Information Technology, and the Energy Bureau have issued the Several Measures to Ensure Control of Energy Consumption recently. Local lead and zinc concentrate mines and refined zinc smelters have been required to control their energy consumption which cannot exceed the level in the same period last year.

Operating rates across Chinese silicon metal producers fell 4.5 percentage points on the month, but up 22% on the year to 49.5% in February, showed an SMM survey.

High aluminum prices constrained growth in downstream operating rates. Plate, strip, foil and industrial extrusion producers have abundant backlog orders and maintained high operating rates. Construction extrusion producers reported fewer new orders due to high aluminum prices. Demand from the automotive sector was relatively strong , while demand from other sectors was weak, forcing some extrusion producers to reduce production.

Orders  continued to pick up last week along with improved orders at electric wire and cable and enamelled wire. Overall consumption of copper rods produced with copper cathode was strong last week but some enterprises saw poor orders. Copper prices exceeded 65,000 yuan/mt with big volatility, keeping most downstream buyers purchasing as required.