Primary lead spot prices rose before falling, and trading was sluggish before the Dragon Boat Festival [SMM Refined Lead Spot Market Weekly Review]

In the spot market this week (6.15-6.18), SMM #1 lead prices first rose then fell, continuing to climb during the week before a slight correction ahead of the holiday. With mid-year settlement and the approaching Dragon Boat Festival, downstream stocking willingness was sluggish, purchases at high prices were cautious, and spot order trading was sluggish.

By region, smelters in Henan had low inventory and tight spot order supply, while traders’ supply was stably at discounts of 100-150 yuan/mt against the SHFE lead 2607 contract, with sluggish trading; smelters in Hunan quoted premiums of 0-20 yuan on the 15th, turned to discounts of 30-0 yuan on the 17th and 18th, with some cargoes negotiated to a discount of 50 yuan; smelters in Jiangxi and Anhui were unwilling to make significant concessions throughout, only slightly lowering their quotes, with premiums narrowing from 100-150 yuan to 80-100 yuan. Overall, downstream mostly relied on long-term contract purchases, and spot transactions were generally weak this week.