Operating rates across primary lead smelters hold stable despite environmental probes

SHANGHAI, May 17 (SMM) – Operating rates across primary lead smelters in Henan, Hunan and Yunnan provinces came in at 59.5% in the week through May 17, unchanged from the previous week, showed an SMM survey.

The rates across the three regions all barely changed from a week ago, even as the top environmental watchdog kicked off a new round of inspections this week.

Environmental probes had little impact on primary lead smelters, as they have improved to meet standards. Small secondary lead smelters in Guangxi and Guangdong, however, felt the impact.

With thin profits in a falling market having already lowered operating rates across small secondary lead smelters, overall lead production is likely to be limitedly affected by this round of inspections.

Guangxi Hechi Nanfang and Inner Mongolia Chifengshan began to undertake maintenance this week, which will lower primary lead supply. The resultant change in inventories is expected in late May to June.

Hunan Shuikoushan plans to conduct maintenance in June. While the repair will only target the crude lead stage and the refining stage will operate normally, refined lead production will likely be affected as most crude lead producers have shut on environmental issues.