In September, the production of silver by-products from smelters steadily increased, with a cumulative YoY growth of over 6% [SMM Analysis]

According to an SMM survey, the production of silver by-products from primary lead smelters in September increased by 7.45% compared to August. In August, lead smelters gradually resumed operations, and the production of silver by-products slightly rebounded from July. Despite some smelters undergoing crude lead maintenance in September, the production of precious and rare metals remained normal, and the recovery of silver by-products steadily increased.

Additionally, the opening of the lead import window in Q2 and the expected strengthening of silver prices led smelters to prioritize comprehensive recovery, significantly increasing the enthusiasm for processing silver-lead ore. Among them, although a smelter in Inner Mongolia experienced a slight decline in silver production due to routine maintenance in September, a smelter in Henan saw a continuous increase in silver processing trade, contributing to the main increase in silver production in September.

From January to September 2024, the cumulative YoY increase in the production of silver by-products from lead smelters was 6.47%. According to an SMM survey, the supply of lead concentrate remained tight in 2024, and TCs continued to decline. Lead smelters no longer pursued lead metal production but instead improved the recovery rate of precious and rare metals through raw materials with higher silver content. Additionally, the YoY increase in silver production from lead smelters in 2024 mainly came from the growth of silver processing trade-related businesses, with higher silver prices allowing some lead smelters to achieve higher "coefficient difference" profits.