Smog controls lower weekly sec lead smelters operating rate by 10.2 percentage points

SHANGHAI, Sep 27 (SMM) – The average operating rate across licensed smelters of secondary lead in Jiangsu, Anhui and Henan provinces fell 10.2 percentage point from the prior week to 40.6% in the week ending September 27, showed an SMM survey.

This week, operating rates in Jiangsu and Anhui came in at 58.3% and 40%, respectively, both unchanged from the week to September 20.

The rate in Henan fell for a second straight week, dropping 31.5 percentage points to 16.9%, as the government required local smelters to scale back operations to combat air pollution.

In Henan, Yuguang Gold & Lead, top lead producer in China, and Huarui smelter in Xinxiang county fully suspended, while Jinli smelter stopped a battery breaking line which used to process about 400 mt of battery scrap a day.

For secondary lead smelters that were not included in the operating rate calculation, the widespread smog-control efforts also led to the closure of smelters in Taihe county of Anhui starting from September 25, and knocked out 500-600 mt of daily secondary lead production in Hebei.

SMM learned that the suspension of production has choked off shipments from secondary lead smelters in Taihe, except for those still having existing inventories.

Restrictions on smelters in Hebei are likely to extend into the National Day holiday, and the exact timing of removal will depend on air quality.