Short-Term Lead Market Demand Lacks Drivers [Institutional Commentary]

Published: Apr 14, 2025 09:30

Save

Last Friday in the domestic spot market, some suppliers suspended shipments to stand firm on quotes. For instance, in Henan, the premium for primary lead was adjusted from a discount to a premium, ranging from 0-100 yuan/mt against the SHFE lead 2505 contract. Downstream restocking intentions improved as the weekend approached, and social inventory slightly decreased by 400 mt from Monday to Thursday. In terms of supply, scrap battery prices remained firm, and some recyclers halted purchases. However, the decline in lead prices outpaced that of scrap batteries, rapidly widening losses for secondary lead smelters and increasing their willingness to cut production. The lack of supply elasticity continued to support lead prices. However, since last week, the SHFE/LME price ratio has widened, opening the import window. Coupled with unresolved external macro risks, short-term pressure on domestic market prices remains. Therefore, it is advisable to maintain a wait-and-see approach in the short term and look for buying opportunities in the medium term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 19:50

Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses

Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.

Feb 6, 2026 19:50

Feb 6, 2026 19:49

"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"

Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.

Feb 6, 2026 19:49

Feb 6, 2026 19:48

Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt

The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.

Feb 6, 2026 19:48