SHANGHAI, Aug 20 (SMM) - Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 65.02% in the week ended August 20, up 3.84 percentage points from the previous week, showed an SMM survey.
The operating rates recovered on the week mainly due to the weakened impact of power curtailment in Henan, and Jinli resumed production early this week.
Lead prices fell this week, and some smelters in Anhui reduced production amid high battery scrap prices and lower profits. However, the production is recovering overall.
In addition to the sample companies, some smelters in Hebei also cut production due to the low profits, while the smelters in Jiangxi basically maintained normal production as the power curtailment was alleviated.
The companies under power rationing may continue to resume production next week. However, the inventories of lead ingots continued to rise this week, and lead prices fell, which may urge secondary lead smelters adjust production depending on the orders. The operating rate may not further increase next week.
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