SMM Shanghai and other 1# lead markets: Secondary lead and primary lead prices inverted, with some downstream enterprises purchasing on dips as needed [SMM Midday Review]

        SMM May 30 report: In the Shanghai market, Chihong and Honglu lead were quoted at 16,535-16,565 yuan/mt, with quotations against the SHFE lead 2506/2507 contracts at a contango of 20-0 yuan/mt. In the early session, SHFE lead prices plummeted, prompting suppliers to exercise caution in their quotations. Some quotations saw a narrowing of the contango. There were fewer warrant quotations in Jiangsu, Zhejiang, and Shanghai. The contango for cargoes self-picked up from primary lead smelters narrowed, with quotations against the SMM 1# lead average price ranging from a contango of 40 yuan/mt to a premium of 100 yuan/mt ex-factory. Secondary lead smelters were reluctant to sell at low prices, with some halting quotations. Spot order quotations against the SMM 1# lead price ranged from a premium of 50-100 yuan/mt ex-factory, while a few traders offered quotations at a contango of 50-0 yuan/mt ex-factory. Downstream enterprises exhibited a strong wait-and-see sentiment, with some intending to purchase at lower prices, while others had no purchase plans due to upcoming holidays or bearish market outlook. The spot order market saw limited improvement in transaction volumes.

        Other markets: Today, the SMM 1# lead price fell by 175 yuan/mt compared to the previous trading day. In Henan, suppliers offered quotations against the SHFE lead 2507 contract at a contango of 180-140 yuan/mt ex-factory, with a small volume of transactions. In Hunan, smelters narrowed their contango quotations, offering prices at a contango of 30-20 yuan/mt against the SMM 1# lead average price ex-factory. In the Guangdong market, suppliers offered quotations at a premium of 20-50 yuan/mt against the SMM 1# lead price. With the significant decline in lead prices, smelters' reluctance to sell at low prices increased, with a few halting quotations. Traders also narrowed their contango quotations. Downstream enterprises had significant differences in their purchase intentions, with an increase in inquiries, but transactions remained sluggish.