SMM Shanghai and Other 1# Lead Markets: Frequent Production Restrictions Improve Spot Lead Market Transactions [SMM Midday Review]

SMM reported on December 19: In the Shanghai market, Honglu lead was quoted at 17,400-17,435 yuan/mt, on par with the SHFE lead 2501 contract; in Jiangsu and Zhejiang regions, Tongguan and JCC lead were quoted at 17,400-17,445 yuan/mt, with a premium of 0-10 yuan/mt against the SHFE lead 2501 contract. On the supply side, news of environmental protection-driven production restrictions emerged one after another. SHFE lead rebounded slightly after dipping to a low. Spot market circulation was limited, and suppliers stood firm on quotes. In regions affected by environmental protection, the premiums for cargoes self-picked up from production sites surged sharply. Downstream enterprises purchased as needed and actively inquired about prices, leading to improved trading activity in the spot market.
Other markets: Today, the SMM 1# lead average price dropped by 150 yuan/mt compared to the previous trading day. In Henan, smelters maintained a premium of 50-100 yuan/mt against the SMM 1# lead price, while some suppliers quoted a discount of 200 yuan/mt against the SHFE lead 2401 contract. In Hunan, spot supply from smelters remained tight, with some producers reducing or halting crude lead production due to environmental protection measures. Primary lead spot prices carried a premium of 230-260 yuan/mt, but actual transactions were minimal. Some producers suspended quotations after depleting their inventories. Downstream buyers actively inquired about prices to buy the dip, but refined lead supply remained insufficient, resulting in overall sluggish market transactions.