In the spot market, this week (March 1-7, 2025), the SMM 1# lead price rose steadily, peaking at 17,200 yuan/mt. Downstream operations gradually resumed, and the supply of refined lead from smelters that completed maintenance in February increased, leading to a simultaneous rise in supply and demand in the spot market. During the week, the US dollar index plunged sharply, and lead prices climbed for several consecutive days amid the collective strength of non-ferrous metals. However, downstream buyers generally adopted a cautious approach to high prices, resulting in an expanded spot-futures price spread. In Henan, smelters quoted premiums of 0-50 yuan/mt against the SMM 1# lead price, while some suppliers quoted discounts of 180-220 yuan/mt against the SHFE 2504 contract. In Hunan, branded lead smelters quoted premiums of 0-50 yuan/mt, while non-branded lead was quoted at discounts of 50-0 yuan/mt, with transactions mainly driven by rigid demand. In Yunnan, primary lead prices also narrowed slightly to discounts of 250-200 yuan/mt. In Jiangsu, Zhejiang, and Shanghai, warehouse warrants were quoted at discounts of 30-0 yuan/mt against the SHFE 2503 contract. Downstream buyers showed low willingness to purchase at high prices, and as the spot-futures price spread widened, some suppliers suspended quotations, waiting for transfer to delivery warehouses. Additionally, in the secondary refined lead market, ex-factory quotations remained at discounts of 50-0 yuan/mt against the SMM 1# lead price. Downstream buyers were cautious in purchasing, and enthusiasm for stockpiling declined as lead prices strengthened, resulting in sluggish market transactions.
