SMM Shanghai and Other 1# Lead Markets: SHFE Lead Fluctuates Upward, Regional Spot Supply Tightens with Transactions at a Premium [SMM Midday Review]

        SMM March 12 News: In the Shanghai market, Chihong lead was quoted at 17,500-17,510 yuan/mt, with premiums of 50 yuan/mt against the SHFE 2504 contract; Honglu lead was quoted at 17,450-17,460 yuan/mt, on par with the SHFE 2504 contract; in Jiangsu and Zhejiang regions, Tongguan and JCC lead were quoted at 17,430-17,460 yuan/mt, with discounts of 30-0 yuan/mt against the SHFE 2504 contract. SHFE lead fluctuated upward, and as delivery approached, suppliers stood firm on quotes, with a few transactions concluded for rigid demand. During this period, primary lead smelters had limited in-plant inventory, and some regions experienced localized supply tightness, leading to shipments at premiums (against SMM 1# lead price). Meanwhile, the supply of secondary refined lead slightly increased, with secondary refined lead quoted at discounts of 100-0 yuan/mt ex-factory against the SMM 1# lead average price. Downstream enterprises purchased selectively based on demand, and in some regions with tight supply, downstream buyers accepted some high-priced goods, while others mainly relied on long-term contract procurement.

        Other markets: Today, the SMM 1# lead price remained unchanged from the previous trading day. In Henan, smelters mainly shipped under long-term contracts, and some suppliers quoted discounts of 160-180 yuan/mt against the SHFE 2504 contract. In Hunan, smelters faced tight supply of primary lead, leading to a tightening supply of primary lead, with firm quotes. In Chenzhou, smelters quoted premiums of 50-100 yuan/mt against the SMM 1# lead average price, with transactions concluded for rigid demand. In Yunnan, quotes were at discounts of 150-200 yuan/mt against the SMM 1# lead average price. With lead prices fluctuating at high levels, smelters mainly shipped at premiums, while downstream buyers were slightly cautious, resulting in mediocre market transactions.