SHANGHAI, Aug 9 (SMM) - China produced 262,200 mt of refined lead in July, up 3.18% MoM and down 6.02% YoY. The combined output in January-July declined by 3.88% on the year. Production capacities of enterprises involved in the survey totalled 5.711 million mt in 2022.
According to the survey, the output in July increased as expected after most smelters finished the maintenance. Chifeng Shanjin, Anhui Tongguan, Yunnan Mengzi and other enterprises resumed from maintenance, and Yongning Gold Lead resumed the production after technical transformation. Therefore, the overall lead output increased. However, it is worth noting that the actual increase in output in July was less than expected, mainly due to the tight supply of lead concentrates. In addition, as the lead prices fell below $1,800/mt in July, the TCs fell and some miners even quoted at $5/dmt. Meanwhile, the supply of ores in Yunnan was tighter, as some enterprises reduced the production.
Refined lead output is expected to increase slightly in August. The lead smelters, such as Chifeng Shanjin, Anhui Tongguan, and Yunnan Lead Oxide have finished the maintenance, which contributes to the major increase in output. In addition, the output of Henan Wanyang will increase after technical transformation. Therefore, the output of refined lead in August is expected to increase by more than 10,000 mt. Meanwhile, Xing'an Silver Lead will start routine maintenance. Overall, SMM expects that the domestic refined lead output will increase to 269,000 mt in August.
