Secondary lead smelters operating rate extended increase on week

SHANGHAI, Oct 25 (SMM) – Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui and Henan provinces averaged 53.3% in the week ending October 25, up 4 percentage points from the previous week, according to an SMM survey.

The operating rate in Jiangsu rose 8.4 percentage points to 66.7%, boosted by ramp-up production at New Chunxing. Henan Jinli maintained normal operation of its two battery disassembling lines, after their resumption last week, and this lifted the average operating rate in Henan by 4.4 percentage points to 56.2%. The rate in Anhui remained unchanged on the week at 40%.

Lower lead prices below 17,000 yuan/mt, sufficient secondary lead supply and limited demand from battery producers grew bearish mood and drove smelters to widen discounts of secondary refined lead, to the deepest level over the past two years. 

As of October 25, secondary refined lead was traded at a discount of 450-600 yuan/mt against the average of SMM 1# lead, ex-factory.