SHANGHAI, Sep 3 (SMM) – Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 62.72% in the week ended September 3, down 1.45 percentage points from the previous week, showed an SMM survey.
Operating rates of secondary lead smelters continued to decline mainly because the losses of secondary refined lead smelters expanded, and some smelters had losses aournd 300-500 yuan/mt. Some smelters in Anhui cut production sharply due to environmental protection control and losses. The output of large smelters in Jiangsu also fell slightly due to market fluctuations. Anhui Xinda resumed production from maintenance, and Guizhou Cenxiang increased production as planned, but the output increment was limited, and the overall operating rate declined.
Among the non-sample companies, Jiujiang Huijin, zhenyu and other small smelters in Jiangxi reduced or suspended production after secondary lead prices fell below the break-even point. smelters in Hubei increased production reduction or suspension. Some smelters in Hebei also reduced production due to the factory relocation. Anhui Huabo Phase I will be put into production in mid-September.
The operating rate may increase slightly this week if profits recover and the emission restrictions loosen.