SMM Shanghai and Other #1 Lead Markets: Suppliers Actively Pre-selling October Cargoes, Market Tends Toward Discounted Trading [SMM Midday Commentary]

        SMM, September 29: In Jiangsu, Zhejiang, and Shanghai, spot availability was limited. With the National Day holiday approaching, some traders had already closed for the holiday and suspended quotations, while others mainly sold primary lead cargoes self-picked up from smelters. Smelters actively sold cargoes for the National Day period, with mainstream production-area quotations at premiums of 0-50 yuan/mt against the SMM #1 lead average price, ex-works, with some negotiable at discounts. For secondary lead, regional supply tightness persisted, and smelter shipments decreased. Mainstream production-area secondary refined lead quotations ranged from a discount of 100 yuan/mt to a premium of 75 yuan/mt against the SMM #1 lead average price, ex-works. Downstream enterprises had completed pre-holiday stockpiling, inquiries were few, and spot market transactions were sluggish.

Today, the SMM #1 lead price rose 25 yuan/mt from the previous trading day. Smelters in Henan continued to deliver earlier orders, and traders quoted at discounts of 50-0 yuan/mt against the SHFE lead 2611 contract, ex-works, for October cargoes. Smelters in Hunan sold at prevailing prices, with spot order quotations at premiums of 0-25 yuan/mt against the SMM #1 lead average price, ex-works, with some negotiable at discounts. Lead prices rebounded slightly, but pre-holiday spot market transactions had clearly weakened. Most downstream enterprises completed stockpiling and awaited the holiday, while a few remained cautious and intended to purchase on dips (spot lead below 16,000 yuan/mt). Suppliers actively pre-sold October cargoes, and spot transactions leaned toward discount deals.

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