SMM January 23:
The SMM weekly operating rate for secondary lead in four provinces was 50.26% during January 16-22, 2026, down 0.12 percentage point WoW. The operating rate in Anhui increased by over 9 percentage points, mainly due to a local smelter resuming production after successfully renewing its hazardous waste business license. The operating rate in Henan dropped by more than 3 percentage points, primarily affected by blizzard conditions delaying raw material arrivals and environmental protection-related controls limiting production. The operating rate in Jiangsu increased slightly, as local enterprises reported higher long-term contract delivery tasks and production ramp-ups due to downstream pre-holiday stockpiling. Inner Mongolia saw new production halts this week, causing the regional operating rate to plunge by 46.29 percentage points.
Downstream battery producers showed moderate pre-Chinese New Year stockpiling interest, and secondary lead smelters still faced finished product inventory pressure. Meanwhile, waste lead-acid battery prices remained high, making it difficult to alleviate smelters' cost pressure. Loss-making conditions dampened secondary lead smelters' production enthusiasm, with most enterprises having formulated holiday plans. As individual smelters in east China resumed production and gradually ramped up output, the secondary lead operating rate is expected to increase slightly next week based on forecast data; however, vigilance is still needed against potential drags from environmental protection-related controls and changes in loss-making situations on the secondary lead operating rate.
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