Two more lead smelter cuts

摘要

Having already undergone considerable rationalisation in recent years, the primary lead smelting industry has seen even more cuts. As we mentioned above, the idling of Port Vesme was not a surprise having been a subject of speculation for some time. However, although it did not come as a complete shock, Doe Run's decision to idle Glover indefinitely from 1~(st) December (see Industry News) had not been a subject of incessant speculation. Doe Run exited the market for lead concentrates as a buyer for its US operations when it cut back production at Herculaneum by 90,000 t/y in April 2001. The company is not expected to lift output there by supplying it with the lead concentrate that has been displaced by Glover's closure. Neither is it expected to make any significant cut in its own mine production, which will result in approximately 160,000 t/y of lead concentrate becoming available to the market. There is speculation that Glencore has already secured this material. Selling lead concentrate rather than refined lead will improve Doe Run's cash flows, particularly given the tightness in the world market for concentrate and the poor market for metal in North America.