Secondary lead smelters operating rates declined on low profits

SHANGHAI, Mar 26 (SMM) – Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou averaged 50.66% in the week ended March 26, down 4.89 percentage points from the previous week, showed an SMM survey.

The average operating rate in Anhui lost 10.69 percentage points on the week as the Camel Group suspended production for maintenance and Huabo reduced output.

Stepped-up production at Henan Jinli lifted local average operating rate by 3.86 percentage points.

The average operating rates in Jiangsu and Guizhou were unchanged compared with the previous week. Guizhou Taijiang Industrial Park was required by the government to conduct rectification.

Except for surveyed smelters, Jiangxi Fengri, Xinya and Jiujiang Huijin suspended production due to sluggish profits and environmental restriction.

Jiangxi Fengri may restart production next week, while Anhui Huaxin and Tianjin Dongbang are likely to bring new capacities online.

Secondary lead output is likely to be flat or rise slightly from this week.