The output of secondary lead in February 2024 was 211,300 mt, a decrease of 33.78% from January and a decrease of 33.32% year-on-year. The cumulative output of secondary lead from January to February 2024 was 530,400 mt, a decrease of 15.61% year-on-year. The output of secondary refined lead in February 2024 was 172,600 mt, a decrease of 36.47% from January and a decrease of 37.85% year-on-year. The cumulative output of secondary refined lead from January to February 2024 was 444,300 mt, a decrease of 18.64% year-on-year.
In January 2024, some secondary lead smelters were still affected by environmental protection controls at the beginning of the month. Several secondary lead smelters in Anhui experienced significant output reductions. In addition, in mid-January, downstream battery manufacturers and secondary lead smelters focused on pre-holiday raw material storage. The demand for battery scrap is large and the price of electric vehicle battery scrap once again exceeded 10,000 yuan/mt; in late January, downstream battery companies completed restocking and closed for holidays. The lack of consumption dragged down lead prices. Secondary lead companies were facing high costs and low finished product prices. Therefore, many smelters suspended production for holidays or maintenance.
In February, fewer calendar days and the Chinese New Year holidays lowered the output of secondary lead. As the lead price fluctuated within a narrow range below 16,000 yuan/mt in mid-to-late February, secondary lead smelters that were closed during the Chinese New Year holiday delayed the resumption of production; therefore, the increase in secondary lead supply was seen in mid-to-late March. According to survey, SMM predicts that the output of secondary refined lead may increase by 127,500 mt to 300,100 mt in March.
