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[SMM survey] the sustained climbing rate of lead concentrate production rose to 40.6% in April.
May 12,2020 18:02CST
The content below was translated by Tencent automatically for reference.

SMM, 12 May:

According to the Shanghai Nonferrous Network (SMM) survey, the operating rate of lead concentrate was 40.6% in April, up 6.5% from the previous month. The survey involved 86 enterprises with a production capacity of 767000 tons.

According to SMM investigation and understanding, in April, the operating rate of lead concentrate continued to climb, the impact of the epidemic on domestic production enterprises basically receded, mining enterprises resumed production one after another, and the contribution of lead concentrate increased month by month. According to the scale of mining enterprises, the specific reasons are as follows:

The operating rate of large mining enterprises with an annual capacity of more than 10,000 tons is 35.5%, with little fluctuation on a month-on-month basis. Among them, Xinjiang Zijin is short of raw ore, output is declining, Guizhou Hongqiao is only mined and not selected, and there is little output. At the same time, Chifeng Baiyinnuer overhaul has been completed, Sichuan Qiansheng Mining Industry and Inner Mongolia Yulong Mining Industry have resumed production, offset by increases and decreases, the total output of lead mine recorded a small increase.

The operating rate of medium-sized mining enterprises with an annual production capacity of 0.51000 tons increased by 19% to 46.6% month-on-month, mainly due to the resumption of production after maintenance in Rongda mining industry in Inner Mongolia and the improvement of lead taste in Fozichong mine in Guangxi. As a result, the output of lead concentrate has been increased.

The operating rate of small mining enterprises with an annual capacity of less than 5000 tons rose 20.9% to 65.6% month-on-month, mainly due to the seasonal suspension of production in the northern high-altitude areas, the impact of the pre-superimposed epidemic situation faded, and mining companies in Inner Mongolia and other places successively resumed production, such as Senxin Mining in Genhe City.

To sum up, lead concentrate production continued to rise in April. Looking forward to May, the seasonal shutdown in high latitudes is basically nearing the end, the peak production season of mining enterprises is approaching, coupled with a small decline in processing fees, it is expected that the start-up rate in May may maintain the upward trend.

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