Smelters Hold Back from Selling at Low Prices, Spot Market Shifts from Discount to Premium [SMM Refined Lead Spot Market Weekly Review]

In the spot market, this week (July 27–31, 2026), SMM #1 lead prices continued to consolidate on a subdued note. The weekly average price fell 185 yuan/mt WoW, and the overall center moved lower. At month-end, downstream enterprises were less motivated to purchase, and some large enterprises met production needs solely through long-term contracts, with scant replenishment from spot orders. As lead prices dropped, maintenance and production cut plans among primary lead and secondary lead smelters increased, and suppliers' willingness to sell fell in tandem. In the spot market, transactions shifted from quotes at discounts to premiums compared to the start of the week. Specifically, mainstream electrolytic lead quotations were at premiums of 0–20 yuan/mt against the SMM #1 lead average price, ex-factory; secondary refined lead quotations were at premiums of 0–20 yuan/mt against the SMM #1 lead average price, with a few enterprises at a premium of 125 yuan/mt. The shift in the spot premium structure was mainly because smelters held back from selling at lower prices after the lead price fell, while suppliers actively shipped inventory to delivery warehouses, alleviating in-factory inventory pressure and tightening available supply in the market.