Operating Rates of Secondary Lead Smelters Down 0.85% on Week

SHANGHAI, Aug 27 (SMM) - Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 64.17% in the week ended August 27, down 0.85 percentage point from the previous week, showed an SMM survey.

The transportation of battery scrap in Henan was hindered due to the spreading pandemic in Zhengzhou, and secondary lead smelters had difficulties in purchasing battery scrap. At the same time, the secondary refined lead smelters continued to suffer losses amid low lead prices, so they were less willing to restock raw materials, which affected the normal production. Some plants reduced production, which dragged down the overall operating rate.

The fourth batch of the second round of central environmental inspections has been launched, leading to the slight decline in the production of some smelters in Guangdong. Several small plants in Hubei suspended production for maintenance due to the equipment failure and poor shipments.  Some small smelters in Jiangxi also reduced production due to the low shipments.

The output of Henan Yongxu gradually increased after it was put into production, which made up for part of the output reduction from other regions.

Supply of lead-acid battery scrap is expected to remain tight next week, and the overall output of secondary lead may be flat on the week.