In the spot market, the SMM 1# lead price ranged between 16,700-16,800 yuan/mt this week.
In the spot market, as the year-end approaches, both upstream and downstream of the industry chain experienced year-end closing and inventory checks, leading to a temporary halt in transactions. Coupled with the ongoing maintenance at primary lead smelters and localized tight supply of secondary refined lead, the lead market saw a decline in both supply and demand. In Henan, smelter supply remained relatively stable, with premiums of 50-100 yuan/mt against the SMM 1# lead price or 50-80 yuan/mt against the SHFE lead 2402 contract. In Hunan, only a few smelters resumed operations as scheduled after the New Year holiday, while many others stopped quoting after depleting their inventories. Spot premiums in this region against the SMM 1# lead price remained at 300 yuan/mt, with limited just-in-time procurement. In Yunnan, December's primary lead supply was also affected by smelter maintenance, resulting in relatively tight spot market availability. Amid the downward fluctuation in lead prices, some suppliers held back sales in anticipation of price increases. Before the New Year holiday, secondary refined lead suppliers showed low willingness to sell and generally adopted a wait-and-see approach, with firm quotes at a premium of around 100 yuan/mt against the SMM 1# lead average price. In the trade market, warehouse warrant spot quotes in Jiangsu, Zhejiang, and Shanghai were limited, with premiums of 50-100 yuan/mt against the SHFE lead 2502 contract. Entering January 2025, downstream just-in-time procurement gradually resumed, and spot order transactions slightly improved compared to the pre-holiday period.
