Secondary Lead Smelters Expand Discounts to Boost Shipments, Narrowing Profit Margins [SMM Secondary Refined Lead Weekly Review]

SMM February 14 News:

Although downstream battery producers have mostly resumed production after the Lantern Festival, the raw material inventory prepared before the holiday has not yet been fully consumed, leading to a relatively cautious attitude toward purchasing lead ingots. Secondary lead suppliers generally reported difficulties in transactions and had to expand discounts to facilitate sales. This week, the ex-factory prices of secondary refined lead (including tax) were at a discount of 150-0 yuan/mt against the SMM 1# lead average price, while the mainstream ex-factory prices of refined lead (excluding tax) ranged from 15,900-16,000 yuan/mt.

Due to tight supply and a significant price increase in battery scrap, coupled with the expanded discounts in secondary lead quotations, the profit margins of smelters have narrowed. As of February 14, 2025, the theoretical comprehensive profit and loss value for large-scale secondary lead enterprises was 233 yuan/mt, while for small and medium-sized secondary lead enterprises, it was 30 yuan/mt.

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