Off-Season Supply and Demand Divergence, Secondary Lead Continues to Suffer Losses [SMM Secondary Refined Lead Weekly Review]

SMM July 10:

This week, secondary refined lead supply was tight, off-season demand weighed on trading, premiums against the SMM #1 lead average price consolidated around parity, and actual transactions were mostly at a discount of 20-30 yuan/mt. Secondary lead production continued to incur losses. As of July 10, 2026, the theoretical consolidated profit and loss for large-scale secondary lead enterprises was -277 yuan/mt, and for medium- and small-scale secondary lead enterprises, it was -464 yuan/mt.

Smelter operating rates are currently low, with production cuts in many regions; downstream demand is weak, scrap battery costs remain firm, and losses are unlikely to improve in the short term. Additionally, suppliers, under pressure from losses, kept offers firm. SMM expects spot order shipment prices for secondary refined lead to maintain parity or a small premium against the SMM #1 lead average price next week.