SMM Shanghai and Other 1# Lead Markets: Lead Price Center Shifts Downward, Downstream Enterprises Cautiously Purchase [SMM Midday Review]

        SMM April 2 News: In the Shanghai market, Chihong and Honglu lead were quoted at 17,350-17,400 yuan/mt, with premiums of 20-50 yuan/mt against the SHFE 2505 lead contract. In the Jiangsu-Zhejiang region, JCC and Jinde lead were quoted at 17,330-17,350 yuan/mt, at parity with the SHFE 2505 lead contract. The SHFE lead price center further moved downward, with suppliers standing firm on quotes and some premiums being raised. However, the premiums and discounts for ex-factory cargoes from primary lead smelters showed relatively small differences. Some suppliers offloaded goods before the holiday, with quotations at premiums of 0-50 yuan/mt against the SMM 1# lead average price ex-factory. Secondary lead smelters were reluctant to sell at low prices, leading to chaotic market quotations. Secondary refined lead was quoted at discounts of 70-0 yuan/mt against the SMM 1# lead average price ex-factory, with a few quotations at premiums of 50 yuan/mt. Downstream enterprises basically purchased as needed, with those on holiday mostly observing the market, while those operating as usual purchased as needed at low prices. Spot market transactions relatively improved.

        Other markets: Today, the SMM 1# lead price fell by 50 yuan/mt compared to the previous trading day. In Henan, smelters mainly shipped under long-term contracts, with suppliers quoting premiums of 50 yuan/mt against the SMM 1# lead or discounts of 160-200 yuan/mt against the SHFE 2505 lead contract. In Hunan, smelters quoted premiums of 50 yuan/mt against the SMM 1# lead, while some traders quoted premiums of 0-50 yuan/mt against the SMM 1# lead, with relatively difficult transactions at high premiums. In Yunnan, quotations were at discounts of 180-200 yuan/mt against the SMM 1# lead average price. SHFE lead continued to fluctuate downward, with downstream enterprises cautious about purchasing due to price declines, and some making just-in-time procurement. Overall market transactions were moderate.