Social inventories of silicon metal across Huangpu port, Kunming city and Tianjin port declined 4,000 mt from the previous week to 32,000 mt as of Friday May 28, SMM data showed. Stocks fell sharply in Kunming due to power consumption restrictions in Yunnan, but were stable at Tianjin port. 

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.

Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 55.1% in the week ended March 12, up 0.4 percentage points from the previous week, showed an SMM survey. (Last week’s operating rates were revised as 54.7% as Anhui Camel Group’s output was corrected.)

Operating rates at copper plate, strip and foil producers stood at 63.79% in February, up 31.18 percentage points on the year, but down 21.09 percentage point on the month, according to an SMM survey.

SMM has surveyed 41 aluminium processing enterprises across 12 provinces. Operating rates across major aluminium processors increased 19 percentage points from a week ago to 60.1% last week.

Operating rates across licensed smelters of primary lead in Henan, Hunan and Yunnan averaged 59% in the week ended February 26, up 4.6 percentage points from February 5, showed an SMM survey.

Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces gained 0.9 percentage point from the previous week to 56.9% in the week ended February 5, showed an SMM survey.