Most lead smelters run with low operation rates in Guangxi
2013-11-28 09:23:31 [Print]
BEIJING (Asian Metal) 28 Nov 13 – Impacted by tight supply of lead concentrate and dull lead and silver market, most lead smelters operate with low operation rate in Guangxi Province.
Chinese lead ingot market remained flat with lead ingot 99.994%min prices at RMB13,850-13,950/t (USD2,270-2,287/t) in the spot market on Wednesday.
A source from a Guangxi-based lead smelter reported that as the lead and silver prices kept low levels, lead concentrate supply was very tight in Chinese market and most lead smelters operated with low operation rates this year. “Meanwhile, impacted by strict environmental protection policy, many local mines and processing plants halted production,” said the source.
The smelter’s lead production is about 500tpm, based on its full production capacity of 20,000tpy.
The smelter offered lead ingot 99.994%min at RMB13,600/t (USD2,230/t) ex works and holds no lead ingot in stock.
A source from another Guangxi-based lead smelter reported that their lead smelter’s lead ingot output is only about 600tpm, based on its full production capacity of 20,000tpy. “Lead concentrate supply remains tight and lead prices lingered at low level, so we will not increase lead ingot production in the near term,” said the source.
The smelter holds few lead ingots on hand and sold lead ingot 99.994%min at RMB13,650/t (USD2,238/t) ex works on Wednesday, the same level compared with that in early this week.
The source predicted that if lead ingot prices continue to linger at around RMB14,000/t (USD2,295/t), the lead concentrate supply may remain tight and the operation rates of lead smelters will keep low in the near term.
Asian Metal learned that Guangxi Chengyuan, Hechi Nanfang, the two major lead smelters in Guangxi, operated with 50% of its production capacity of 90,000tpy and 80,000pty respectively. Wwuzhou Nonferrous Metal’s lead smelter with production capacity of 60,000tpy has been out of production for months.
Lead Ingot 99.994%min In warehouse Guangzhou
Unit:RMB/mt
China primary lead producers' operating rate statistics by province by month
Unit: %
