SMM Shanghai and Other 1# Lead Markets: Suppliers Lower Premiums to Offload Cargo, Spot Lead Market Transactions Become Increasingly Sluggish [SMM Midday Review]

SMM, January 21: Quotations in the Shanghai market were scarce; JCC lead in Jiangsu and Zhejiang regions was quoted at 16,745-16,805 yuan/mt, with a premium of 0-50 yuan/mt against the SHFE 2502 contract. SHFE lead fluctuated upward, and suppliers gradually completed inventory clearance, resulting in fewer quotations. During this period, primary lead smelters actively quoted for shipments, with premiums declining day by day, and a few already quoting on par with the SMM 1# lead average price ex-factory. Secondary lead shipments also gradually decreased, with a few quoting at a discount of around 50 yuan/mt ex-factory. Meanwhile, as more downstream enterprises went on holiday, the spot order market became increasingly sluggish.

Other markets: Today, the SMM 1# lead price rose by 25 yuan/mt compared to the previous trading day. In Henan, long-term contract cargo pick-up remained dominant, with suppliers quoting a discount of 50 yuan/mt against the SHFE 2402 contract, and transactions were based on rigid downstream demand. In Hunan, a few small smelters sold on par, while other smelters still quoted with a premium of 100 yuan/mt. As downstream stockpiling ended, market transactions turned sluggish, with trading activity gradually declining.