Lead Prices Reversed and Pulled Back, Spot Market Transactions Showed Significant Divergence [SMM Midday Review]

        SMM March 28 news: In the Shanghai market, Chihong lead was quoted at 17,425-17,475 yuan/mt, with premiums of 0-50 yuan/mt against the SHFE 2504 contract. In the Jiangsu-Zhejiang region, JCC and Jinde lead were quoted at 17,425-17,455 yuan/mt, at parity against the SHFE 2504 contract. SHFE lead reversed its trend and fell, leading to a decline in suppliers' willingness to sell, with some standing firm on quotes. Among them, smelter ex-factory cargoes saw narrowed premiums (against the SMM 1# lead average price), while secondary refined lead maintained large discounts, with discounts of 160-0 yuan/mt ex-factory against the SMM 1# lead average price. Downstream enterprises showed increased enthusiasm for inquiries, with some making just-in-time procurement and others cautiously waiting and watching. Spot order market transactions improved slightly.

        Other markets: Today, the SMM 1# lead price fell by 75 yuan/mt compared to the previous trading day. In Henan, smelters mainly shipped under long-term contracts, with suppliers quoting premiums of 0-50 yuan/mt against the SMM 1# lead or discounts of 150-170 yuan/mt against the SHFE 2505 contract. In Hunan, suppliers' premiums against the SMM 1# lead were slightly reduced to 25-50 yuan/mt. In Yunnan, discounts against the SMM 1# lead average price remained at 160-170 yuan/mt. After the weakening of futures lead, smelters' quotations diverged, with some holding back low-priced goods due to limited supply, while others reduced premiums to sell. Downstream enterprises made just-in-time procurement at low prices, and spot transactions improved regionally.