Downstream Resumption of Work Slower, Procurement Weak, Secondary Lead Operates at a Loss with Discounts [SMM Secondary Refined Lead Weekly Review]

SMM February 27:

After the holiday, downstream battery enterprises resumed work at a slow pace, with weak purchase willingness for lead ingots, leading to a sluggish lead price trend. Secondary lead enterprises were under pressure and incurred losses, with low enthusiasm for spot order shipments and limited offers. The current ex-factory price was at a discount of 50-0 yuan/mt to the SMM #1 lead average price. Although downstream enterprises gradually resumed work, they mainly focused on digesting pre-holiday inventory, and lead ingot procurement was expected to see limited improvement next week.

Supported by the steady to rising scrap battery prices, secondary lead production costs remained high while ex-factory prices were weak, resulting in sustained losses for smelters. As of February 27, 2026, the theoretical comprehensive profit/loss for large enterprises was -344 yuan/mt, and for small and medium-sized enterprises was -558 yuan/mt (by-product revenue in the model excluded tin and antimony), indicating significant profit pressure across the industry.

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