SHANGHAI, Jul 9 (SMM) — SMM data showed that China produced 319,200 mt of secondary lead in June, down 3.62% from May, and up 24.43% from a year ago. For January-June, output surged 86.83% from the same period last year.
SMM survey showed that the maintenance of secondary lead smelting enterprises went hand in hand with the resumption of production in June, and the overall output decreased month on month. On the one hand, Anhui Tianchang stopped production for about 15 days for maintenance and Chaowei stopped production for about 20 days for maintenance. Jiangsu Xinchunxing was in a state of technological transformation, which affected the output in June. On the other hand, lead prices once fell below 15,000 yuan/mt in early June, breaking the secondary lead cost line, and some refineries turned down their production plans. At the same time, the maintenance of companies such as Anhui Dahua, Hunan Jinyi, and Jiangxi Jinyang has ended. However, due to the concentration of production reduction companies, it is difficult to reverse the overall decline in output.
Output of secondary lead is expected to rise sharply in July from the previous month. The main reason is that many smelting enterprises resume production from maintenance. Jiangsu Xinchunxing completed technical reform, Anhui Chaowei, Huaxin Avenue, Jiangxi Xinya, Yiyang Xingwang and other enterprises resumed production from maintenance. Therefore, although Anhui Tianchang, Hubei Jinyang and other enterprises are under maintenance, the overall output maintains upward trend. SMM expects China's secondary lead output to increase over 30,000 mt to 356,200 mt in July.
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