Poor Profits of Secondary Lead Smelters amid Weak SHFE Lead Prices

SHANGHAI, Feb 10 (SMM) - SHFE lead prices remained low and the average price of SMM 1# lead ingots stood at 15,105 yuan/mt as of February 10. The premiums of long-term orders diverged greatly between 300-50 yuan/mt and some smelters were more willing to trade in the form of small orders under the huge discounts for long-term orders. According to SMM estimates, the profits of small orders were 50-200 yuan/mt. But some smelters still delivered in the form of long-term orders due to the losses caused by the low prices. On the whole, SHFE lead prices were still supported by the secondary lead prices. And smelters are unlikely to reduce the production as they were still profitable.