Supply and Demand Both Declined in the Week Before the Holiday, Downstream Stockpiling Ended, and Transactions Were Sluggish [SMM Refined Lead Spot Market Weekly Review]

In the spot market, the SMM 1# lead price operated at 16,600-16,700 yuan/mt this week. In the spot market, as the Chinese New Year holiday approached this week, pre-holiday restocking by downstream enterprises concluded, market transactions gradually weakened, quotations decreased, and the holiday atmosphere was strong. At the beginning of the week, suppliers actively sold off to cash out, with downstream enterprises making nearby just-in-time purchases. In Henan, smelters slightly expanded the discount against the SMM 1# lead price to 50-0 yuan/mt. In Hunan, the supply of primary lead remained stable, with some suppliers selling at parity or slight discounts. However, due to factors such as limited logistics vehicles and the completion of pre-holiday restocking by downstream enterprises, transactions were minimal. As smelter maintenance had not yet resumed, quotations in Guangdong and Yunnan remained firm at the beginning of the week. By the weekend, some suppliers in Guangdong lowered premiums, while the discount for primary lead in Yunnan returned to 200 yuan/mt. In the trade market, lead ingots ordered last week or earlier this week were gradually transferred from social warehouses to downstream enterprises' in-plant inventories. This week, warehouse warrant quotations were scarce, and as downstream enterprises ceased procurement, trade market transactions gradually came to an end. Additionally, in the secondary refined lead market this week, both supply and demand were weak. At the beginning of the week, some suppliers still showed a willingness to sell, quoting secondary refined lead at discounts of 75-0 yuan/mt against the SMM 1# lead average price on an ex-factory basis. Around the Little New Year, as upstream and downstream enterprises entered holiday mode and logistics operations halted, market transactions came to a standstill, and the holiday atmosphere intensified.

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