SMM Shanghai and Other 1# Lead Markets: Lead Prices Remain Range-Bound as Downstream Enterprises Make Just-in-Time Procurement [SMM Midday Review]

        SMM, February 18: In the Shanghai market, Honglu lead was quoted at 17,115-17,150 yuan/mt, on par with the SHFE 2503 contract; in Jiangsu and Zhejiang regions, JCC and Jijin lead were quoted at 17,095-17,150 yuan/mt, at discounts of 20-0 yuan/mt against the SHFE 2503 contract. SHFE lead continued to consolidate, with suppliers maintaining stable premiums and discounts. Meanwhile, smelters offered ex-factory cargoes self-picked up from production sites, quoted at discounts of 50 yuan/mt to premiums of 150 yuan/mt against the SMM 1# lead average price. In the secondary lead market, due to the scrap battery prices being more likely to rise than fall, smelters stood firm on quotes. Secondary refined lead was quoted at discounts of 100-0 yuan/mt against the SMM 1# lead average price, ex-factory. However, downstream enterprises had limited just-in-time procurement needs and showed weak purchase willingness for high-priced lead, with most transactions based on just-in-time procurement. The spot order market saw sluggish transactions.

        Other markets: Today, the SMM 1# lead price dropped slightly by 25 yuan/mt compared to the previous trading day. In Henan, suppliers quoted discounts of 50-0 yuan/mt against the SMM 1# lead average price, while some smelters with low inventories quoted on par with the SMM 1# lead average price, ex-factory. In Hunan, smelter supply gradually recovered but was mainly shipped under long-term contracts, with suppliers quoting discounts of 50-0 yuan/mt for transactions. In Yunnan, quotations remained at discounts of 300 yuan/mt, but downstream purchases were scarce. After lead prices weakened, downstream buyers were cautious and hesitant to procure due to fears of further price drops, resulting in sluggish transactions.