SHANGHAI, May 18 (SMM) - Operating rates of mining companies have a certain seasonal pattern. Usually, production in the first quarter is limited by factors such as the Spring Festival holiday, cold weather, and environmental protection inspections. However, this situation was exacerbated in the first quarter of 2022, due to factors such as the Winter Olympics and pandemic control.
According to SMM survey, many smelters also entered the stage of maintenance or temporary shutdown in May.
On May 11, a small-scale refined lead smelter in Hunan was closed for maintenance. It is expected to resume production at the end of May, involving an annual production capacity of 60,000 mt. In May, its refined lead output may drop by about 1,000 mt.
On May 16, a refined lead smelter in Henan was also closed for reconstruction. It is expected to resume at the end of May. According to SMM assessment, its refined lead production may be reduced by about 3,000 mt in May, and the surplus crude lead will be directly sold in the market. After the completion of reconstruction, its output will increase.
On May 17, a lead smelter in Inner Mongolia said it will enter routine maintenance at the end of May, and the impact is expected to be reflected in June.
On May 18, crude lead and refined lead smelters in Yongxing County, Hunan Province, were subject to safety checks following accident at a local smelter. SMM estimates that this may affect 4,000-5,000 mt of refined lead output in May.
According to SMM data, since April 22, the weekly operating rate of primary lead smelters has continued to decline, and stood at 53.88% as of May 13, down 4.17 percentage points from the high on April 1.
