Chinese electric arc furnace (EAF) steelmakers operating rates continued to edge higher as of early May, driven by the resumption of producers in central China as the spread of the coronavirus has stalled. However, the rally in operations will be constrained due to a surge in feedstock steel scrap prices. 

Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou continued to stabilise at 49.6% in the week ended May 8, showed an SMM survey. 

Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou held steady at 49.6% in the week ended April 30, showed an SMM survey.

SHFE nonferrous metals rose across the board on Friday, as market sentiment was rallied after China’s Ministry of Finance pledged to make an early allocation of the special-purpose bond quotas for transportation infrastructure construction. 

Crude oil prices jumped on Thursday, following their biggest-ever quarterly losses, as US President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war.

The impact from the coronavirus pandemic on China’s aluminium exports is mounting as greater part of the world comes under lockdown to stop the spread of the virus. On Wednesday, Vietnam, a major buyer of Chinese aluminium, entered into a 15-day period of nationwide isolation. Residents are required to stay at home and can only go outside for “essential needs,” such as food, medicines, urgent medical services or to go to work at companies permitted by the government to remain open.

Shanghai base metals opened mostly higher on Wednesday morning, as Beijing said that it will roll out a set of fiscal and financial policies to expand domestic demand, assist businesses reopening, sustain employment, and help all types of businesses to weather this difficult time.

SMM data showed that stocks across eight consumption areas in China, including SHFE warrants, decreased 3,000 mt from last Thursday March 26 to 1.664 million mt as of Monday March 30.

Operating rates across Chinese lead-acid battery plants extended their increase this week as producers in Hubei, the epicentre of the COVID-19, accelerated their resumption of production lines. An SMM survey showed that operating rate across lead-acid battery producers in Jiangsu, Zhejiang, Jiangxi, Hubei and Hebei provinces averaged 65.24% in the week ended March 27, up 4.39 percentage points from last week. Chinese lead-acid battery plants in areas besides Hubei maintained stable operations this week. 

Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces averaged 52.5% in the week ended March 27, up 1.3 percentage points from the prior week, showed an SMM survey.