China's output of secondary lead in April 2024 was 374,400 mt

The output of secondary lead in April 2024 was 374,400 mt, down 0.98% from March and up 4.35% year-on-year. The cumulative output of secondary lead from January to April 2024 was 1.28 million mt, down 5.93% year-on-year. The output of secondary refined lead in April 2024 was 327,000 mt, a decrease of 0.9% from March and an increase of 6.87% year-on-year. The cumulative output of secondary refined lead from January to April 2024 was 1.10 million mt, a decrease of 6.6% year-on-year.

The demand for replacing battery scrap was low in April due to the traditional off-season. The limited amount of scrapped battery led to tight supply. The purchasing offers of secondary lead smelters were raised for many days, and recyclers were bullish and reluctant to sell, reducing shipments. The raw material inventory of secondary lead smelters dropped significantly, and many smelters across China reduced production. In addition, the "reverse invoicing" policy for the recycling industry was announced in late April. The increase in taxes and fees raised the recycling costs of battery scrap traders. This also prompted secondary lead smelters to raise their purchasing prices. In May, the continuous increase in procurement costs increased the financial pressure of some smelters. At the same time, several other large smelters stopped production due to equipment failure and environmental protection certificate renewal issues. SMM expects the output of secondary refined lead to decline by 31,400 mt to 295,600 mt in May.