China secondary lead output in August and September

The output of secondary lead in August 2023 was 416,900 mt, an increase of 10.97% from July and up 19.25% year on year; the cumulative output of secondary lead from January to August 2023 was 2.91 million mt, an increase of 3.83% year on year. In August 2023, the output of secondary refined lead was 358,800 mt, an increase of 7.03% from July, and a growth of 17.75% year on year; from January to August 2023, the cumulative output of secondary refined lead was 2.53 million mt, an increase of 4.05% year on year.

According to SMM research, many secondary lead smelting companies completed maintenance and resumed production in July, and their output gradually stabilised or returned to normal levels in August. Output at Anhui Tianshuo and Hunan Kangze was also relatively stable after newly-built production capacities were put into operation. In addition, the resumption of production at some small and medium-sized secondary lead smelters that had been closed for a long time has also contributed a large amount of output. During the month, the output of several companies in Anhui, Hunan, Guizhou, Inner Mongolia and other regions declined due to equipment failures, raw material shortages and other reasons; but overall, the output growth in August was still in line with expectations.

The output of secondary lead will still increase in September. A large smelter in Ningxia completed maintenance and resumed production. The output at companies in Anhui, Zhejiang and Guizhou that have undertook maintenance in August is expected to be normal in September. Some other companies with adequate inventory of raw materials are confident to increase production. In addition, the high lead prices put great pressure at some battery manufacturers, planning to ramp up production at their secondary lead smelters in September to reduce purchases of lead ingot. SMM expects China's secondary refined lead output to stand at around 398,300 mt in September.