SMM Exclusive: Current State of the Secondary Refined Lead Industry

Lead primarily serves in modern industry for radiation protection materials, cable armoring, anti-corrosion substances, solder, and lead-acid batteries among others. Presently, the total reserve of global lead resources is approximately 90 million mt. Australia and China are leading with reserves of 36 million mt and 18 million mt respectively, which account for 40% and 20% of the global total, positioning them as the first and second largest in the world. China holds the title as the world's largest producer and consumer of refined lead, contributing to roughly 40% of total global production. With the ongoing expansion of downstream lead industries, the demand for lead raw materials has been increasing, hence the depletion of extractable resources from mines.

As outlined in the "The 14th Five-Year Plan of the People’s Republic of China," by 2025, the production of secondary non-ferrous alloy is projected to reach 20 million mt. This includes 4 million mt of secondary copper alloy, 11.5 million mt of secondary aluminum alloy, and 2.9 million mt of secondary refined lead. The total output value of the resource recycling industry is anticipated to reach the 5 trillion yuan mark. China's secondary refined lead industry is still experiencing growth, with the utilization rate of secondary refined lead standing at about 54%. This is in contrast to the average level in developed countries which is above 60%. Consequently, China's secondary refined lead industry has a vast potential for further development.

In China, an overwhelming majority of over 85% of the raw materials for secondary refined lead are sourced from scrap lead acid batteries. Within the total weight of a scrap lead acid battery, lead constitutes around 70%. Furthermore, the lead content in the secondary refined lead, extracted from these scrap lead acid 、batteries, can reach up to 98%.

Over recent years, the domestic disposal volume of waste batteries has stabilized at about 7 million mt. Despite the continual increase in the ownership of automobiles and electric bicycles, the overall disposal volume of waste batteries remains relatively unchanged, attributable to the annual decrease in the number of motorcycles, tricycles, and quadricycles.

Given the anticipated ongoing rise in the number of motor vehicles, coupled with the development of energy storage sectors such as telecommunication base stations, the disposal volume of waste batteries is set to continually increase. By 2024, the domestic disposal volume of waste batteries is projected to reach 7.6 million mt.

At present, the secondary refined lead industry is making strides towards a more industrialized park-based development. Leading enterprises in the secondary refined lead sector are working synergistically with their upstream and downstream partners. They are congregating within these industrial parks to create a circular production model for secondary refined lead. This collaborative approach not only strengthens inter-company relationships but also encourages the adoption of innovative business models, such as "Internet Recycling". This strategy is aimed at improving technical equipment standards, thus promoting sustainable and high-quality growth within the secondary refined lead industry. For a more comprehensive insight, please refer to the SMM 2023 China Secondary Refined Lead Analysis Annual Report.

The SMM China Secondary Refined Lead Analysis Annual Report delivers an expert interpretation of current hot topics and the implications of major macroeconomic policies, It conducts an extensive examination from the upstream to the downstream aspects of the secondary refined lead industry. This includes an evaluation of the market dynamics of lead-acid batteries, which serve as the principal raw material, an assessment of the growth of enterprises engaged in secondary refined lead production, an analysis of the prevalent technological trends in the secondary refined lead industry, and a forecast of future demand trends in the industry's downstream sectors. This extensive report presents a deep dive into the present state and future outlook of national production capacity and output, import and export dynamics, domestic market share held by leading enterprises, and production cost structures of prominent companies. It stands as an essential guide for businesses throughout the secondary refined lead industry to devise prescient strategic plans. For further information, please reach out to Zhang Yuting, the Project Manager of the Nonferrous Consultation team, on 18701906042. We invite you to subscribe to The SMM China Secondary Refined Lead Analysis Annual Report, which is available in both English and Chinese.

SMM stands as an authoritative provider of professional consultation services in the non-ferrous industry in China. Their comprehensive product portfolio encompasses a wide array of services such as industry supply and demand price analyses, supply chain management studies, market surveys, on-the-ground research, expert industry reports, tailored research reports, industry planning documents, and industry whitepapers, among others. In response to evolving market conditions, these reports can be updated on a quarterly, semi-annual, or annual basis.