Rigid raw material costs are hard to reduce, and secondary lead losses may persist [SMM Secondary Refined Lead Weekly Review].

SMM June 5 news:

Lead prices pulled back sharply, suppliers showed poor willingness to sell, and downstream wait-and-see sentiment was strong. This week, secondary refined lead transactions were subdued overall. Tight supply of scrap battery raw materials pushed up production costs, further deepening industry losses. As of June 5, large secondary lead enterprises lost 517 yuan/mt, while small and medium-sized firms lost 725 yuan/mt, with losses widening by 158 yuan/mt from June 1. The bargaining disadvantage of small and medium-sized enterprises led to wider losses. Looking ahead, production resumptions at secondary lead smelters in east China, northwest China, and other regions will boost rigid demand for scrap batteries, making raw material purchase prices more likely to rise than fall, leaving little room for cost-side pullback. Meanwhile, increased refined lead supply from resumptions will put product quotes under pressure. Under the combined influence of multiple factors, the loss-making pattern in the secondary lead industry is hard to change, and small and medium-sized producers remain mired in deep losses.