SMM Shanghai and Other #1 Lead Markets: Discount for Secondary Lead Narrowed Significantly, Downstream Enterprises Adopted a Wait-and-See Approach [SMM Midday Review]

        SMM March 31: In the Shanghai market, Chihong lead was quoted at 17,395-17,425 yuan/mt, with premiums of 20-50 yuan/mt against the SHFE 2504 lead contract. In the Jiangsu-Zhejiang region, JCC and Jinde lead were quoted at 17,375-17,400 yuan/mt, at parity against the SHFE 2504 lead contract. SHFE lead fluctuated downward, but due to the firm scrap prices, cost support played a role, and SHFE lead stabilized after the decline. Suppliers quoted prices based on market conditions, with some ex-factory primary lead cargoes quoted firmly, mostly at small premiums (against the SMM 1# lead average price). Meanwhile, secondary lead smelters were reluctant to sell at low prices due to cost factors, and the discounts for secondary refined lead narrowed significantly, quoted at discounts of 50-0 yuan/mt ex-factory against the SMM 1# lead price, with a few even quoted at premiums of 50 yuan/mt. Downstream enterprises adopted a wait-and-see approach with limited procurement, and spot order market transactions were sluggish.

        Other markets: Today, the SMM 1# lead price fell by 100 yuan/mt compared to the previous trading day. In Henan, smelters mainly shipped under long-term contracts, with suppliers quoting premiums of 25-75 yuan/mt against the SMM 1# lead or discounts of 150-200 yuan/mt against the SHFE 2505 lead contract. In Hunan, suppliers quoted premiums of 50-75 yuan/mt against the SMM 1# lead. In Yunnan, quotes maintained discounts of 160-170 yuan/mt against the SMM 1# lead average price. SHFE lead continued to fluctuate downward, with smelters mostly quoting premiums for spot orders, especially for those with limited supply, while downstream enterprises made just-in-time procurement at low prices.