SMM March 25, 2025 News
During the day, the most-traded SHFE lead 2505 contract opened at 17,500 yuan/mt, fluctuated around the 17,530 yuan/mt level, and finally closed at 17,560 yuan/mt, down 0.11%, with an open interest of 61,032.
Recently, lead smelters in Henan entered maintenance, coupled with other maintenance plans, primary lead supply is expected to decrease MoM in April. Some smelters in Hunan have cut production due to insufficient raw materials, and there have been water pollution environmental protection incidents. Environmental protection inspections have extended to Guangxi and Guangdong, but no significant production impact has been observed so far. Meanwhile, lead prices have plummeted, squeezing smelting profits, especially with scrap battery prices remaining high. The profit and loss levels of secondary lead enterprises are approaching the cost line, and a small number of production cuts have occurred in key production areas. Additionally, imported lead has entered the domestic market, partially filling the raw material supply gap, such as the widening regional price spread of secondary refined lead. In the short term, the lead market will continue to trade around supply changes and secondary production costs.
