SHFE Lead Prices Grow Further (2017-6-6)

[SMM September 14] The SMM survey shows that the combined net increase in secondary refined lead production schedules for sample enterprises in September totaled 44,400 mt, a notable rebound from -3,900 mt in August. However, entering mid-September, tight scrap battery arrivals and a weaker lead price on the macro front have successively exerted pressure, and the actual realized extent may be revised downward.

[Waste Lead-Acid Battery Market Update] A small-to-medium secondary lead smelter in Northwest China suspended scrap battery quotations and temporarily stopped accepting new orders starting September 14, with the resumption time to be announced separately. According to the person in charge of the enterprise, the suspension was mainly due to concentrated raw material arrivals over the weekend. The primary reason was that SHFE lead weakened in the night session last Friday, prompting recyclers to sell off in panic and accelerate deliveries, resulting in a notable increase in vehicles arriving at the plant over the weekend. To avoid long vehicle queues and a negative impact on client experience, the enterprise decided to first process its existing raw material inventory. Currently, the plant has sufficient scrap battery raw material inventory to sustain production for more than half a month.