Environmental Protection-Related Controls in December & Strong Chinese New Year Atmosphere in January Lead to Concentrated Maintenance at Secondary Lead Smelters, Resulting in Significant Production Decline [SMM Analysis]

Published: Jan 24, 2025 17:00

Save

[SMM Analysis: Significant Decline in Secondary Lead Smelter Production Due to Environmental Protection Controls in December and Strong Chinese New Year Atmosphere in January] SMM, January 24: In January 2025, secondary crude lead production declined as expected, down 9.23% MoM and 8.57% YoY. Secondary refined lead production fell 13.36% MoM and 15.12% YoY. Frequent heavy pollution weather in December, coupled with secondary lead smelters reducing or halting production to comply with environmental protection-related controls, led to supply tightening. Moving into January, the Chinese New Year atmosphere gradually intensified...

》View SMM Lead Product Prices, Data, and Market Analysis

》Subscribe to View SMM Historical Spot Metal Prices

》Click to Access the SMM Database

SMM, January 24:

The production of secondary crude lead in January 2025 declined as expected, down 9.23% MoM and 8.57% YoY. Secondary refined lead production fell 13.36% MoM and 15.12% YoY. Frequent heavy pollution weather in December, coupled with secondary lead smelters cooperating with environmental protection-related controls by reducing or halting production, led to tightened supply.

In January, the festive atmosphere of the Chinese New Year gradually intensified, and downstream battery producers started their holiday breaks earlier than usual. Pre-holiday stockpiling demand was weaker than in previous years, making lead ingot transactions challenging. Under such market conditions, secondary lead smelters showed an increased willingness to reduce or halt production during the Chinese New Year break, with some smelters that had suspended production in December postponing their resumption dates until after the holiday. It is reported that the number of secondary lead smelters resuming production before the Lantern Festival is smaller than those resuming after the festival. Additionally, the post-holiday recovery progress of battery scrap recyclers will affect the restocking speed of raw materials for secondary lead smelters. If post-holiday battery scrap supply remains tight, it will also impact the recovery of secondary lead production. Overall, the probability of a significant surge in secondary lead production in February is very low, with the main increase likely to occur in March.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

5 hours ago

Tianjin Sabo Recalls 100 E-Bikes Over Safety Concerns

[Lead-Acid Battery End-Use Market Update] Recently, in accordance with the requirements of the Interim Provisions on the Administration of Consumer Product Recalls, Tianjin Sabo Vehicle Co., Ltd. voluntarily submitted a recall plan to the Tianjin Municipal Administration for Market Regulation and will recall, effective immediately, 100 units of the Jiebao Da Wangpai model TDT200Z e-bikes manufactured during the period up to December 31, 2023.

5 hours ago

6 hours ago

Dragged Down by Broad Losses in Base Metals, Lead Prices Closed Lower Intraday [Lead Futures Brief Review]

6 hours ago

Chilwee Group Reports Strong Sales of Sodium-Ion Batteries, Expands Production and Opens First Store

[Lead-Acid Battery Enterprise Updates] Chilwee Group recently disclosed that after the large-scale commissioning of its sodium-ion batteries, they have continued to sell strongly, with all orders for this year already locked in. Its two existing production lines have been operating at full capacity, and eight additional production lines have entered the installation and commissioning stage. At present, the company has 4.5 Gwh of sodium-ion battery capacity and opened its first directly operated sodium-ion battery store in 2025, attempting to directly encourage end-use consumers to replace the lead-acid or lithium batteries in some two-wheeler models with sodium-ion batteries.

6 hours ago