Downstream Stocking Nears End, Secondary Lead Profits Face Pullback Pressure [SMM Secondary Refined Lead Weekly Review]

SMM, September 24:

In the first half of the week, lead prices fluctuated at highs. Secondary lead suppliers held offers firm due to tight spot order cargoes, narrowing from a discount of 75 yuan/mt against the SMM #1 lead average price to parity; mainstream transaction prices stood at a discount of 100-50 yuan/mt against the SMM #1 lead average price, and downstream enterprise purchasing sentiment was moderate. In the second half of the week, the market turned quiet and transactions weakened. Scrap battery prices remained stable during the week without significant increases, and smelters' losses narrowed. As of September 24, SMM large-scale secondary lead enterprises saw a comprehensive profit of 100 yuan/mt, while small and medium-sized enterprises recorded -79 yuan/mt (excluding by-product gains from antimony, tin, etc.).

Looking ahead to next week, stockpiling for the double festival is nearing its end, and downstream purchasing is expected to slow down; with sulphuric acid by-product prices declining, energy costs remaining high, and imported cargoes continuing to weigh on the market, secondary lead smelting profits face pullback risks.