Secondary Refined Lead Trading Performance Weak, Tight Costs Constrain Loss Recovery [SMM Secondary Refined Lead Weekly Review]

SMM August 7:

The secondary refined lead market remained in a stalemate, affected by tight raw material supply and smelting losses, with smelters holding back from selling and holding prices firm. During the week, mainstream spot order transactions were at a discount of 75-0 yuan/mt to the SMM #1 lead average price. Battery consumption remained sluggish. Downstream users only made just-in-time procurement, and with primary lead diverting demand, overall spot transactions were weak.

Scrap battery prices remained relatively stable, providing strong cost support for smelters. As of August 7, 2026, the theoretical combined profit/loss for large secondary lead enterprises was -392 yuan/mt, while that for small and medium-sized plants was -570 yuan/mt. Next week, battery enterprises’ purchasing sentiment will remain the core factor affecting the market. If lead prices do not rise significantly, discounts on secondary lead shipments will be unlikely to widen further, and smelting losses will also be difficult to narrow.