SMM Shanghai and Other 1# Lead Markets: Lead Prices Continue to Strengthen, Suppliers' Sentiment to Stand Firm on Quotes Runs High [SMM Midday Review]

        SMM March 6 News: In the Shanghai market, Chihong lead was quoted at 17,340-17,390 yuan/mt, with a premium of 0-50 yuan/mt against the SHFE lead 2503 contract. Honglu lead was quoted at 17,370-17,385 yuan/mt, on par with the SHFE lead 2504 contract. In the Jiangsu and Zhejiang regions, Yuguang, Tongguan, and JCC lead were quoted at 17,330-17,385 yuan/mt, with a discount of 40-0 yuan/mt against the SHFE lead 2504 contract. SHFE lead fluctuated upward, and suppliers were actively selling, with some intending to transfer to delivery warehouses, leading to a further narrowing of discounts. Additionally, the ex-works prices of primary lead from smelters saw an increase in premiums, quoted at a premium of 50-150 yuan/mt against the SMM 1# lead average price. Some downstream enterprises showed eased pessimism about the market outlook and began purchasing as needed, resulting in improved activity in the spot order market.

        Other markets: Today, the SMM 1# lead price rose by 75 yuan/mt compared to the previous trading day. In Henan, smelters quoted a premium of 0-50 yuan/mt against the SMM 1# lead price or a discount of 180-220 yuan/mt against the SHFE lead 2504 contract. In Hunan, branded lead smelters quoted a premium of 50-100 yuan/mt against the SMM 1# lead price, with transactions based on rigid demand, while traders quoted a discount of 230-250 yuan/mt against the SHFE lead 2504 contract. In Yunnan, the discount against the SMM 1# lead price remained at 250 yuan/mt. Lead prices fluctuated upward, with the spot-futures price spread widening during the day. Some traders purchased in preparation for delivery, while downstream consumption orders recovered slowly, and market participants maintained a cautious sentiment, resulting in limited improvement in transaction activity.