SMM Shanghai and Other No. 1 Lead Markets: Lead Smelters Actively Sold Before Qingming Festival, While Downstream Purchases Were Uneven [SMM Midday Review]

SMM reported on April 1: In the Shanghai market, Chihong lead was quoted at 17,395-17,435 yuan/mt, with premiums of 20-30 yuan/mt against the SHFE 2505 lead contract. In the Jiangsu-Zhejiang region, JCC and Jinde lead were quoted at 17,375-17,405 yuan/mt, at parity against the SHFE 2505 lead contract. SHFE lead showed a consolidating trend, and due to limited circulating cargoes, suppliers stood firm on quotes, with some small premium cargoes being traded in small volumes. Meanwhile, ex-factory quotations for primary lead smelter cargoes shifted from premiums to discounts, with mainstream production areas quoting premiums of 0-100 yuan/mt against the SMM 1# lead average price ex-factory. Secondary lead smelters expanded discounts for shipments, with secondary refined lead quoted at discounts of 100-0 yuan/mt against the SMM 1# lead average price ex-factory. Downstream enterprises maintained purchasing as needed, with some planning to take holidays during the Qingming Festival, showing moderate enthusiasm for purchasing. Some made purchases as needed before the holiday, and spot transactions improved slightly.

Other markets: Today, the SMM 1# lead price remained unchanged from the previous trading day. In Henan, smelters mainly shipped under long-term contracts, with suppliers quoting premiums of 25-75 yuan/mt against the SMM 1# lead or discounts of 160-200 yuan/mt against the SHFE 2505 lead contract. In Hunan, suppliers quoted premiums of 0-50 yuan/mt against the SMM 1# lead. In Yunnan, quotations maintained discounts of 160-170 yuan/mt against the SMM 1# lead average price. SHFE lead fluctuated downward, with some smelters reducing premiums for shipments before the holiday. Downstream enterprises showed a strong wait-and-see sentiment, with mixed demand for lead ingots. Most downstream enterprises still made just-in-time procurement, and overall market transactions showed no significant changes, with slight improvements in some small regions.