In order to increase metal prices as well as save electricity and complete maintenance 27 of China’s smaller lead and zinc smelters agreed to reduce production by 10 percent in July and September. Analysts have also suggested that building a stockpile of lead will help keep prices stable.

Tong Leshen, an analyst with the Shanghai Nonferrous Metals Trade Association, told China Daily that falling lead and zinc prices have created great difficulties forChinese companies.

A trader with a lead and zinc smelter in Central China told the Times that “many small smelters have halted production for a while due to tightened credit and lack of orders from clients, so a coordinated production cut means nothing to them.”

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