Domestic Lead and Zinc Mines Gradually Enter Regular Shutdown Cycles: How Will Lead Concentrate Supply Reduction and Resumption Pace Unfold? [SMM Analysis] [SMM Analysis]

Published: Jan 8, 2025 16:36

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[SMM Analysis: Domestic Lead and Zinc Mines Gradually Enter Regular Shutdown Period - How Will Lead Concentrate Supply Reduction and Resumption Pace Unfold?] Domestic lead and zinc concentrates have gradually entered the regular Chinese New Year shutdown and maintenance period since December, with significant differences in holiday schedules among major domestic mines. A few mines in high-latitude regions are affected by factors such as climate, geology, and transportation, leading to a substantial increase in mining and processing costs. The longest shutdown and resumption preparation period can reach up to three months.

According to SMM, domestic lead and zinc concentrates have gradually entered the regular Chinese New Year shutdown and maintenance period since December. A few mines in high latitude regions face significantly increased costs for mining and beneficiation due to climate, geological, and transportation conditions, with the longest shutdown and resumption preparation period reaching up to three months.

Based on SMM's experience, the holiday schedules for major domestic mines are as follows:

In 2025, the holiday duration in regions such as Qinghai, Jilin, and Tibet remains primarily 2-3 months, while mines in Xinjiang, Hunan, and Inner Mongolia have an average holiday duration of about 30-50 days. In addition to the increased winter mining costs, the holiday schedules of some mines are also related to their labor structure. Mines employing mainly migrant workers typically have longer holiday periods compared to those relying on local labor. According to SMM data, lead concentrate output decreased MoM in December, and a further MoM decrease is expected in January.

From the perspective of the shutdown schedule, the earliest mine shutdowns began in mid-December, with all inventory sales and settlements completed by early January. Except for a few mines maintaining beneficiation plant operations during the Chinese New Year, most mines schedule their annual regular shutdowns during the week of January 20, but nearly all mines will complete the sales and financial settlements for January's mineral products by January 24 (latest by January 27). Although most mines have not finalized their shutdown plans, the number of lead and zinc mines entering the shutdown period is expected to increase significantly after the Little New Year. Regarding the resumption period, short-cycle (15-20 days) regular maintenance projects will gradually resume from the first working day after the Chinese New Year to the week of the Lantern Festival, while long-cycle (30-90 days) regular shutdown projects will be delayed until late February or March.

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