In the spot market, this week (December 23-27), the SMM 1# lead price ranged from 17,025-17,300 yuan/mt.
In the spot market, the supply from primary lead smelters continued to decline, with significant regional differences in spot supply. In Henan, smelter supply remained relatively stable, quoted at premiums of 50-100 yuan/mt against the SMM 1# lead price. In Hunan, the production cuts and suspensions of primary lead smelters expanded this week. After smelters sold out their inventories, they stopped quoting prices, and the limited spot supply was quoted at premiums of 250-300 yuan/mt against the SMM 1# lead price. In Yunnan, supply also declined, with only small-scale smelters offering limited spot quotations for just-in-time procurement. The recovery pace of secondary refined lead production was slowed by factors such as smog, leading to significant regional differences in spot supply. This week, mainstream ex-factory quotations for secondary refined lead, including tax, were at discounts of 50-0 yuan/mt against the SMM 1# lead average price, while downstream maintained just-in-time procurement. In the trading market, warehouse warrant spot cargoes in Jiangsu, Zhejiang, and Shanghai against the SHFE lead 2501 contract were quoted near parity. On the last trading day, lead prices weakened significantly, prompting traders to raise premiums and hold back sales. As year-end approaches, downstream consumption orders were average, and both upstream and downstream in the industry chain experienced year-end closing and inventory checks, pausing transactions. Some enterprises postponed procurement needs, and overall spot order transactions in the market were sluggish.
