Secondary Refined Lead Premiums Widen First Then Narrow, Loss Recovery Constrained by Raw Material Side[SMM Secondary Refined Lead Weekly Review]

SMM, August 14:

This week, secondary refined lead premiums/discounts widened first and then narrowed. Mid-week, spot order discounts against the SMM #1 lead average price temporarily widened to 75-100 yuan/mt; on Friday, lead prices pulled back, smelters held back from selling, and discounts narrowed to 0-50 yuan/mt. Downstream finished product inventories were elevated, end-use demand was weak, and overall market trading was sluggish. During the week, the rise in lead prices drove a marginal narrowing of smelting losses. The composite weekly profit/loss of SMM-scale enterprises averaged -362 yuan/mt. However, reluctance to sell from the recycling side kept waste lead-acid battery prices firm, limiting room for smelters to narrow losses. Looking ahead to next week, lead prices are expected to weaken. If waste battery prices do not decline significantly in tandem, smelters' losses will widen again, while secondary refined lead spot order discounts may continue to narrow.