【SMM Announcement】SMM Adds Price Point Announcement for Waste Lead-Acid Batteries in Jiangxi Region

SMM Announces New Price Points for Waste Lead-Acid Batteries in Jiangxi Region

Dear Users,

Greetings!

The secondary lead capacity in Jiangxi region, after experiencing a low point, is now in a phase of recovery and growth. Currently, the annual scrap processing capacity in this region exceeds 1 million mt, accounting for approximately 6.8% of the national total. Due to its proximity to Anhui province, a major secondary lead production area, enterprises across the lead industry chain have shown significant interest. To help market participants better grasp the market trends of waste lead-acid battery recycling, provide references for enterprise pricing and settlement, and reduce transaction risks and costs, SMM, after in-depth market research and analysis, has decided to add three types of waste lead-acid battery prices in Jiangxi region: waste e-bike batteries (Jiangxi), waste black shell batteries (Jiangxi), and waste white shell batteries (Jiangxi), which will officially take effect on April 28, 2025.

I. General Principles of SMM Price Assessment Methodology

SMM Information & Technology Co., Ltd. (hereinafter referred to as SMM) is a completely independent third-party service organization that does not participate in any substantive transactions. It maintains close communication with buyers or sellers as a market observer or organizer and provides relevant services to the market. SMM continuously formulates, reviews, and revises its methodology through communication with industry professionals, adopting the most common product specifications, trade terms, and conditions in the industry, and equally valuing normal transactions that meet specification standards. SMM reserves the right to exclude any price data deemed unreliable or unrepresentative from its price assessments.

SMM reports the spot transaction prices of the domestic spot market in China daily, commonly referred to as SMM prices. SMM prices are strictly generated according to a certain methodology. SMM has defined methodologies for the prices of all reported metal products. All methodologies and definitions are publicly disclosed on SMM's official website (www.smm.cn) to ensure all market participants understand the process and standards of SMMprice reporting.

SMM's price assessment methodology is the basis and foundation for the generation of SMM prices. To align with the actual conditions of the spot market, SMM will make necessary adjustments to the price assessment methodology. Any changes to the price assessment methodology will be announced on SMM's official website at least 30 days in advance. Any questions or suggestions regarding SMM prices or the price assessment methodology can be directed to SMM's customer service as published online.

This document specifies the standards and management methods for the formulation of SMM's spot prices for waste lead-acid batteries. The purpose of establishing this standard by SMM is to create a transparent and verifiable SMM price formulation mechanism, providing an important pricing indicator for market participants.

II. Formation of SMM Spot Prices for Waste Lead-Acid Batteries

2.1. Definition

SMM waste lead-acid battery prices are formed and published by SMM according to this methodology. The prices are in RMB/mt, including 3% VAT, reflecting the ex-factory transaction prices of waste lead-acid batteries in the Jiangxi spot market on each working day.

2.2. Product Specifications

Waste e-bike batteries refer to waste power-type e-bike lead-acid batteries containing non-flowing acid, abbreviated as "waste e-bike batteries." Waste black shell batteries are a type of waste automotive starter lead-acid batteries, generally referring to waste automotive batteries below 80Ah, mostly used in passenger vehicles, traded with acid but priced minus the acid.

Waste white shell batteries are a type of waste automotive starter lead-acid batteries, generally referring to waste automotive batteries above 80Ah, mostly used in commercial vehicles, traded with acid but priced minus the acid. The reference standard is "Lead and Lead Alloy Scrap GB/T13588-2006."

2.3. Generation of Quotation Methods

SMM price collectors collect quotations and related data for waste lead-acid batteries from price submitters' contacts via phone, QQ, and WeChat daily from 9:40 to 11:30 (each trading day, consistent with SHFE trading days). Price data submitted after 11:30 will not be used as the basis for the day's price assessment. All instant messaging content, email communication, and any face-to-face communication records will be archived, and details of phone communications will be summarized and entered into the database. All paper records must be signed by the price collectors and retained permanently. SMM price analysts collect price data according to the collection standards, combine the preliminary price data results with the corresponding market's spot conditions, futures conditions, policies, industry status, market transactions, supply and demand, inventory levels, and other major political, economic, and natural factors, and finally derive a preliminary raw data set.

SMM price analysts must comply with relevant SMM compliance systems when reporting any communication content that is forced or threatened, or any attempt to influence the assessment results through inducement offers to their supervisors.

2.4 Standardization of Information Data

SMM price analysts need to standardize the preliminary data results:

Since waste lead-acid batteries contain a certain proportion of dilute sulfuric acid after being scrapped, such as waste automotive starter lead-acid batteries being traded with acid but priced minus the acid. In actual transactions, buyers and sellers agree to deduct the price based on the dilute sulfuric acid content, with the standard being that the acid content in the sampling results does not exceed 16%, and black shell batteries are uniformly converted to acid-deducted prices.

Formula: Acid-deducted price = Price with acid / 0.84

VAT on the waste lead-acid battery market was implemented in March 2022. Since tax-free transactions still exist in the actual market, the tax-free waste lead-acid battery quotations collected need to be increased by 3% VAT.

Formula: Tax-inclusive price = Tax-free waste lead-acid battery price * 1.03%

2.5 Price Release

SMM waste lead-acid battery prices are released at 11:40 each trading day on SMM's official website in both Chinese and English. (Excluding Chinese legal holidays and weekends)

The deadline for price collection is 11:30 AM, and the 10 minutes between 11:30 and 11:40 are used to verify data and calculate the final released spot prices for waste lead-acid batteries. SMM encourages price submitters not to wait until the last moment to submit data to ensure that SMM price analysts have sufficient time to verify the data before incorporating it into the valuation process. The release time may also be affected by various emergencies and force majeure factors, such as power outages and natural disasters. If this occurs, SMM will make every effort to inform the market of the delayed price release time as early as possible. The prices released by SMM are available to any customer who subscribes to SMM services. The prices released by SMM are protected by copyright, and any third party without a clear agreement with SMM may not distribute or use them for commercial purposes.

III. Methodology Changes

All markets are changing, and SMM has the responsibility to ensure that the methodology tailored to the market evolves with it. Therefore, SMM will regularly conduct internal reviews of the appropriateness of the methodology based on industry feedback and make changes to all substantive but non-urgent potential issues. SMM will follow a formal external consultation process, then announce major changes and provide a notice period of at least 28 days, inviting industry professionals to comment, unless special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcies, etc.), shorten the notice period. SMM is committed to carefully considering all comments on methodology changes, but in some cases, it may have to make changes to the methodology against the wishes of some market participants. Additionally, SMM has a formal methodology consultation process.

SMM Information & Technology Co., Ltd. Lead and Zinc Division April 23, 2025