SMM Shanghai and Other #1 Lead Markets: Suppliers Actively Sold Before the Holiday, Spot Lead Tightness Slightly Eased [SMM Midday Commentary]

        SMM September 22: In the Shanghai market, Chihong lead was quoted at 16,545-16,615 yuan/mt, at premiums of 100-150 yuan/mt against the SHFE 2611 lead contract. SHFE lead remained strong, and most suppliers sold along with market trends. Meanwhile, the tightness of primary lead smelters' ex-works cargoes continued to ease, with high-premium quotes slightly lowered. Mainstream production area quotes were at premiums of 50-120 yuan/mt against the SMM #1 lead average price on an ex-works basis. In secondary lead, many smelters cut or halted production, and operating enterprises held prices firm while selling. Mainstream production area secondary refined lead quotes ranged from a discount of 100 yuan/mt to a premium of 25 yuan/mt against the SMM #1 lead average price on an ex-works basis. Downstream enterprises made just-in-time procurement, while others mostly stayed on the sidelines, resulting in moderate spot market transactions.

Today, the SMM #1 lead price rose by 50 yuan/mt from the previous trading day. The spot tightness in Henan eased slightly, with a small number of current-month spot quotes emerging in the market. Suppliers actively quoted and sold, while also pre-selling October cargoes. Spot order quotes were at discounts of 50-20 yuan/mt against the SHFE 2611 lead contract on an ex-works basis, with no improvement in transactions. In Hunan, smelters sold along with market trends, with spot order quotes maintained at premiums of 100-150 yuan/mt against the SMM #1 lead average price on an ex-works basis, and actual transactions leaned toward premiums of 100 yuan/mt or below. In Jiangxi and Anhui, smelters' spot order quotes were at premiums of 120-150 yuan/mt against the SMM #1 lead average price on an ex-works basis, with some being pre-sales of October cargoes. With lead prices elevated, downstream enterprises mostly held a wait-and-see attitude, while suppliers actively quoted and sold. The scarcity of spot lead improved slightly, and some downstream players waited for new monthly long-term contracts to begin, resulting in weak spot market transactions.

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