SMM Shanghai and Other #1 Lead Markets: Lead Prices Consolidate on a Subdued Note, Spot Market Trading Atmosphere Sluggish [SMM Midday Commentary]

        SMM, September 2: In the Shanghai market, Chihong lead was quoted at 16,180-16,260 yuan/mt, at premiums of 50-100 yuan/mt against the SHFE lead 2610 contract. SHFE lead maintained a consolidating trend, suppliers offered limited quotes, and a small number of warrant cargoes remained quoted at premiums. In addition, EXW cargoes from primary lead smelters were relatively tight in circulation, suppliers' sentiment to hold prices firm remained unchanged, and mainstream production-area quotes were at premiums of 0-50 yuan/mt against the SMM #1 lead average price. In the secondary lead sector, smelters sold as the market moved, and mainstream production-area secondary refined lead quotes were at discounts of 100-50 yuan/mt against the SMM #1 lead average price. Downstream enterprises showed strong wait-and-see sentiment, some enterprises intended to buy the dip, and inquiry enthusiasm improved slightly, but overall transactions remained weak.

Today, the SMM #1 lead price fell 25 yuan/mt from the previous trading day. Smelters in Henan maintained firm offers, with quotes at premiums of 50 yuan/mt against the SMM #1 lead average price; traders' spot order quotes were at discounts of 120-80 yuan/mt against the SHFE lead 2610 contract. Some smelters in Hunan were under maintenance, market circulating cargoes were limited, and spot order quotes were at premiums of 0-50 yuan/mt against the SMM #1 lead average price; traders' quote discounts narrowed significantly to discounts of 100 yuan/mt against the SHFE lead 2610 contract. Smelters in Jiangxi and Anhui quoted spot orders at premiums of 80-100 yuan/mt against the SMM #1 lead average price. Lead prices consolidated on a subdued note, suppliers showed strong sentiment to hold back from selling at low prices, and quotes in south China decreased from yesterday. Secondary lead smelters sold at discounts as the market moved, some downstream purchasing demand was diverted, and other downstream enterprises mainly purchased via long-term contracts, with overall market trading sentiment sluggish.

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