Secondary lead smelters operating rates dipped to 54.2%

SHANGHAI, Aug 7 (SMM) — Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 54.2% in the week ended August 7, down 0.2 percentage point from the previous week, showed an SMM survey. 

The average rate in Henan lost 6.1 percentage points to 54.4% as local battery scrap traders held back from selling to wait for higher prices.

The average rate in Guizhou gained only 5.1 percentage points to 47.7%. Smelters of Dingxin, Yongxin and Sanhe remained under environmental inspections, and technical upgrading at Jinlong smelter limited its output recovery. Besides, some battery makers took the summer break, and Cengxiang kept low operating rates due to poor sales. These deterred the local average operating rate from rising significantly.  

The average rates in Anhui and Jiangsu remained unchanged at 48.4% and 66.7% respectively as tight supply of battery scrap prevented smelters operations from rising.

SMM expects operating rates across secondary lead smelters to increase next week as Anhui Dahua will further raise output and the environmental inspections in Guizhou will come to an end.