Lead production in China's Henan province to decline in 2015

The main lead processing plants, centered in central China in Henan province, are planning to cut production by 15 to 30 percent in 2015 due to falling global lead prices, according to a report from the Non-Ferrous Metals Industry.

Domestic lead futures have dropped below smelter costs in recent weeks, according to data from the Shanghai Stock Exchange. In response, Henan's lead and gold refineries, which represent China's large steel groups, are planning to cut production, which should cause sales to decline. Some lead producers in Hunan and Jiangxi provinces have already implemented a program to cut output at the end of 2014.

China produced 3.522 million tons of refined lead in January-October, cutting output by 6 percent year on year, with a lead smelting capacity utilization rate of 67.8 percent. China estimates that consumption fell 4 percent year-on-year in the country during January-October.

The Henan Group is the leader in refined lead production with 1.142 million tonnes of output in the January-October period, down 14 percent year on year. Hunan posted the second highest lead output of 993,000 tons in the same period, up 5 percent year on year. At the same time, the two large lead refineries Jiaozuo Dongfang Gold & Lead Co and Luoyang Yongning Gold & Lead Refining Co. in 2014, the combined capacity was reduced by 150,000 tons per year.