Slow consumption drags on operation across licensed secondary lead smelters

SHANGHAI, Jun 21 (SMM) – Licensed smelters of secondary lead across Anhui, Henan and Jiangsu provinces operated at a lower rate in the week to Friday June 21 as widespread production cuts across lead-acid battery mills dragged on consumption in a slow season.  

SMM data showed that the operating rates across licensed secondary lead smelters of the three areas averaged 47.1% in the week ended June 21, down 6.5 percentage points from the previous week.

The average rate across smelters in Anhui fell sharply by 22.9 percentage points on the week, to 18.4%, as Anhui Huabo put its phase-two production lines into maintenance on June 15. Maintenance is expected to end on July 1, affecting the output of secondary lead by 300-400 mt/day. 

Operating rates across Jiangsu’s smelters held firm at 50%, and the rates across smelters in Henan also stood flat at 75.4% this week.

Smelters of secondary lead barely showed an inclination to firm up offers, and this allowed secondary refined lead producers to keep offloading cargoes at discount. 

As of Friday June 21, trades of secondary refined lead occurred at a discount of 100-150 yuan/mt, ex-works with taxes included, against the average price of SMM #1 lead. Offers by some producers that procure battery scrap as feedstock were down to a discount of 200 yuan/mt ex-works.