High Costs Provide Support, Spot Secondary Crude Lead Moves Sideways [SMM Scrap Battery & Secondary Crude Lead Weekly Review]

SMM April 24 update:

Lead prices moved sideways this week. Raw material costs remained elevated and firm, continuing to support spot secondary lead prices, with strong sentiment across the market to hold prices firm. Domestic ordinary secondary crude lead was mainly traded at 15,300-15,350 yuan/mt excluding tax, and at discounts of 75 yuan/mt to parity against the SMM #1 lead average price including tax. The SHFE/LME price ratio continued to converge, narrowing import lead trade profits. Suppliers held back cargoes and were reluctant to sell, with overall offers being scarce. Imported crude lead (containing 0.2 Sb and 0.3 Sn) was offered at discounts of around 50 yuan/mt against the SMM #1 lead average price. Looking ahead to next week, the supply of domestic secondary crude lead and imported crude lead is expected to remain tight, and with the lead-acid battery end-user market in the off-season, downstream procurement pace is expected to stay cautious. Spot secondary lead premiums are expected to move sideways within a narrow range.