Some refined lead and alloy smelters in China have cut or halted production as domestic secondary lead smelters face increasing cost pressures, according to analysis published on June 30.

Lead acid battery end use consumption remains sluggish, with weak purchasing demand for lead ingots and lead alloys, according to data published by the Shanghai Metals Market (SMM).

SMM said secondary refined lead production rose slightly by 2.2% month-on-month but dropped sharply by over 31% from the 2026 peak of 282,000 tonnes in January.

The industry’s production centre shifted lower continuously in the second quarter and SMM said its weekly operating rate for secondary lead across four provinces hovered in the range of 28.4%–29.7% throughout the month, staying well below the normal reasonable range for a prolonged period.

SMM warned in June 2025 that secondary lead smelters in China were in “dire straits” following a fall in raw material stocks and operating activities.

The situation comes despite the commissioning of new secondary smelting capacity in the country in 2025, as reported earlier this year by the Lisbon-based International Lead and Zinc Study Group (ILZSG).

ILZSG also said Chinese net imports of lead contained in lead concentrates increased by just over 14% to 1,243kt in 2025, while net imports of refined lead metal amounted to 52kt compared to 126kt in 2024.