SMM analysis on weekly operating rate of primary lead smelters

According to a survey by SMM, the operating rate of primary lead smelters during June 29-July 5 was 60.80%, an increase of 3.77 percentage points from a week ago.

In the week of July 1-5, smelters in Henan that had previously halted production due to partial maintenance have resumed production. However, the survey indicates that there are still expectations of reduced production due to maintenance in late July. Additionally, the reduction in secondary refined lead production in Anhui has somewhat alleviated the tight supply of battery scrap in Henan, leading to an increase in the operating rate of smelters affected by raw material supply. In Hunan, production mainly resumed, and some smelters mentioned the arrival of imported lead concentrate at ports under long-term contracts, causing marginal fluctuations in production, with the operating rate still showing slight growth. In Yunnan, the supply of lead concentrate remains tight, with some smelters experiencing a decline in production, and future production plans may be adjusted based on raw material supply. Outside the survey samples of the three provinces, a smelter in Jiangxi experienced slight production fluctuations, but July's production remained stable. Meanwhile, smelters undergoing routine maintenance in Inner Mongolia and Anhui are expected to resume production in mid-July. Additionally, a lead smelter in Qinghai has halted production due to technical upgrades, with plans to resume production delayed until August.