Operating rates at primary lead smelters inch up as production recovers from maintenance

SHANGHAI, Jun 21 (SMM) – The average operating rate across primary lead smelters across Henan, Hunan and Yunnan inched up 0.4 percentage point from the previous week to stand at 61% between June 17-21, showed an SMM survey.

The production recovery from maintenance at Hunan Shuikoushan smelter helped lift the rate.

Inner Mongolia Chifengshan Gold, Silver & Lead also recovered, while other smelters plan to end maintenance and resume production in July.

Weak lead prices and concentrate treatment charges, however, will likely deter smelters from operating at full capacity.

Despite firm prices of battery scrap, lead prices failed to find strong support from secondary lead prices, which maintained a discount of 100-150 yuan/mt against primary materials, as downstream consumption remained sluggish.