Milan 12/03/2015 - Doe Run will not reopen its shuttered Herculaneum primary lead smelter in Missouri, vice president of sales and marketing Jose Hansen told delegates at the Metal Bulletin World Lead Conference here.
“If the plant was in another country today, I think it wwould keep working; unfortunately, the regulation gets tougher and that’s why the plant will stay closed,” Hansen said.
Doe Run, one of the world's largest lead producers, closed Herculaneum, the last operating primary lead smelter in the US, in 2013 due to pressure from environmental regulation. It still mines concentrate for export and recycles lead batteries, however.
The closure of Herculaneum removed 140,000 tonnes per year of capacity in the US, which was made up in imports from neighbouring North American Countries in Canada and Mexico.
In 2014 US imports hit an all-time high of 464,000 tonnes, accounting for about 29 percent of total domestic consumption last year and up 40 percent on the 2013 import total, Hansen said.
About 40 percent of the additional imports come from countries outside North America.
North American demand for lead is set to increase to an estimated 1.9 million tonnes in 2015, a 1.5-2.0 percent increase on 2014 levels, Hansen said.
Premiums for 99.97 percent purity lead in the US are at 11-12 cents per pound basis delivered to the Midwest region, with offers for 99.99 percent purity material around 14-15 cents in a tightly supplied market.
(Editing by Mark Shaw)