Secondary lead output decreases by 0.58% month-on-month in September
According to Mysteel's statistics, in September 2022, the lead ingot output of domestic licensed secondary lead enterprises reached 291,200 tonnes, and the capacity utilization rate was 50.14%. This survey covers 60 domestic secondary lead enterprises, involving 706,5000 tonnes of secondary lead capacity, accounting for 83% of the total national secondary lead capacity.
The output in September decreased by 17,000 tons compared with August, with a decline of 0.58% month-on-month. The actual production was 12,000 tonnes or 3.97% lower than expectation. In Anhui and Sichuan Province, enterprises resumed production. In Zhejiang Province, an enterprise actively increased production to catch up with the annual output.
However, due to the continuous loss, secondary lead refineries that began to reduce production in late August continued to increase. One refinery in Hubei Province reduced production due to losses, and one refinery in Jiangxi Province maintained equipment at the beginning of the month. The above factors are the main reasons that lead to the decline of output.
Data Source: Mysteel
Secondary lead inventory in smelters decreases continuously
In September, the inventory of secondary lead at smelters was 16,000 tons, with a decrease of 7,000 tons and 30.26% month-on-month. The decline of inventory was mainly concentrated in the markets of Henan, Hebei, Jiangxi and Ningxia Province. Inventory in the market of Inner Mongolia increased slightly. Reasons for inventory decline: Terminal consumption improved, and battery factories purchased more actively before National Day Holiday than previous years due to bullish sentiment of the market.
Data Source: Mysteel
Forecast for October
The rise of lead price has led to the recovery of secondary refineries profit, and the enthusiasm for production has improved. In October, only one refinery in Anhui Province will conduct routine maintenance, and its output will drop sharply. Overall, the increase of output in October will be larger than the decrease affected by maintenance. It is estimated that the output of secondary lead may increase to 299,100 tonnes in October.
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