July could be a critical month for the China’s scrap lead-acid market as the Shanghai Metals Market (SMM) predicts a slow down.
Poor end-user consumption and lead prices will limit the rise in operating rate at Chinese primary lead smelters in July, SMM has predicted.
A survey by the metals information company showed that Zhuzhou Smelter Group, Chifeng Shanjin Silver & Lead and Jingui Silver all plan to conduct maintenance in July.
Other smelters in the country may cut production after scrap lead-acid battery prices dropped slightly, despite lead prices posting a rise, reported SMM.
China has also decided to cut the VAT rebate for lead recycling operations from 50% to 30%, effective July 1. This is likely to cause many secondary lead smelters to lower their procurement prices for scrap batteries, SMM said.
