SMM Shanghai and Other #1 Lead Markets: Market Circulation Supply Tightens, Lead Ingot Prices High with Weak Trading [SMM Midday Commentary]

        SMM, October 12: Chihong lead in Shanghai was reported at 16,200-16,300 yuan/mt, quoted at premiums of 200-250 yuan/mt against the SHFE 2611 lead contract, or 0-50 yuan/mt against the SHFE 2610 lead contract. SHFE lead continued to consolidate on a strong note, and with delivery approaching, circulating supply in the market tightened, pushing quoted premiums higher. Mainstream production areas quoted at premiums of 30-150 yuan/mt against the SMM #1 lead average price ex-works. In the secondary lead market, smelters also limited shipments, with mainstream production areas quoting secondary refined lead at premiums of 0-75 yuan/mt against the SMM #1 lead average price ex-works. Downstream enterprises maintained purchasing as needed, with most relying on long-term contracts for purchases, while spot order transactions were limited.

Today, the SMM #1 lead price rose 75 yuan/mt from the last trading day before the holiday. Smelters in Henan focused on long-term contract deliveries, with limited spot circulating supply. Spot orders were quoted at premiums of 0-50 yuan/mt against the SHFE 2611 lead contract ex-works, mostly for pre-sales. Smelters in Hunan held prices firm and sold as market conditions allowed, with spot orders quoted at premiums of 30-100 yuan/mt against the SMM #1 lead average price ex-works. Traders quoted at parity against the SHFE 2611 lead contract ex-works. Smelters in Jiangxi and Anhui quoted at premiums of 120-150 yuan/mt against SMM #1 lead ex-works, with some for pre-sales. Lead prices strengthened, and with limited circulating supply in the market, suppliers mostly held prices firm and sold at premiums. Meanwhile, downstream enterprises were cautious in purchasing, resulting in scarce and high-priced spot cargoes and moderate trading activity.

Data source statement: Except for publicly available information, all other data are processed by SMM based on public information, market communication, and SMM's internal database models. They are for reference only and do not constitute decision-making advice.