SHANGHAI, Oct 15 (SMM) — The operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou stood at 56.17% this week, up 10.06% from the previous week, an SMM survey showed.
The operating rates rose sharply as lead prices rose to above 15,000 yuan/mt as lead smelters are active in production on higher profits. In addition, the output of secondary lead smelters that has been affected by power rationing achieved partial recovery amid the phased loosening of the impact of the post-holiday power rationing, which has also led to an increase in the output of secondary lead smelters in the four markets. Anhui Huabo, Chaowei, Jiangsu Xinchunxing were less impacted by power rationing and market conditions, ramping up their output. The maintenance at Anhui Xinda and Dadao ended this week, and the output increased.Some smelters in Guangdong and Jiangxi began to resume production amid the end of environmental protection inspection and rising profits. Although Anhui Tianchang, Shanxi Yichen and Jiangxi Zhenyu suspended production due to equipment maintenance intraweek, the operating rates still trended higher. The power rationing is likely to intensify next week and producers in Anhui and Henan have received notices of power rationing, impacting the secondary lead output across four markets. The operating rates are expected to trend lower.
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