SMM Shanghai and Other 1# Lead Markets: Futures and Spot Prices Diverge, Spot Lead Transactions Weak with Widening Discounts [SMM Midday Review]

        SMM, February 10: Quotations in the Shanghai market were scarce; in Jiangsu and Zhejiang regions, JCC and Jijin lead were quoted at 17,105-17,140 yuan/mt, with discounts of 20-0 yuan/mt against the SHFE 2502 contract or on par with the SHFE 2503 contract. SHFE lead continued to consolidate at high levels, and suppliers followed the market trend in offering cargoes. Some discounts widened WoW. In major regions, smelters quoted ex-factory cargoes self-picked up from production sites at premiums of 0-100 yuan/mt against the SMM 1# lead average price. Meanwhile, the circulation of secondary lead increased, with secondary refined lead quoted at discounts of 50-0 yuan/mt against the SMM 1# lead average price ex-factory. Downstream enterprises remained on the sidelines, though inquiries slightly increased WoW, while spot transactions remained sluggish.

        Other markets: Today, the SMM 1# lead price was flat compared to the previous trading day. The spread between futures and spot prices slightly widened compared to last Friday. In Henan, suppliers quoted discounts of 180 yuan/mt against the SHFE 2403 contract. In Hunan, premiums slightly declined, but the total supply remained limited, with smelters quoting premiums of 50-100 yuan/mt. In Yunnan, discounts remained at 300-200 yuan/mt. After resuming operations, downstream enterprises primarily focused on long-term contract cargo pick-up, with some downstream enterprises making just-in-time procurement after resuming work this week. Spot order transactions were generally sluggish.