SMM April 30 update:
Lead prices fluctuated at highs before pulling back this week, with secondary refined lead generally trading at discounts. Early in the week, smelter maintenance increased and regional supply tightened, with quotes maintained at a discount of 80 yuan/mt to a premium of 50 yuan/mt. Downstream buyers saw weak rigid demand ahead of the holiday, and market trading was sluggish. From mid-week to the weekend, lead prices weakened. Raw material cost support narrowed quotes to a discount of 50 yuan/mt to a premium of 50 yuan/mt, as downstream enterprises gradually went on holiday and spot cargo transactions remained weak.
Regional secondary lead supply contracted as smelters held prices firm on shipments. Combined with stable scrap battery procurement prices, smelting costs pulled back somewhat, and losses were slightly repaired. As of April 30, large enterprises posted losses of 109 yuan/mt, while small and medium-sized enterprises posted losses of 309 yuan/mt. Next week, scrap battery raw material inventory will remain tight, some smelters will cut production, and secondary lead supply will contract. Downstream consumption will remain weak, the weak supply-demand pattern on both sides will continue, and industry losses will be difficult to improve. Secondary refined lead is expected to maintain a discount of 50-0 yuan/mt.
