SMM News on May 7: In the Shanghai market, Chihong lead was quoted at 16,720-16,770 yuan/mt, with premiums of 50-100 yuan/mt against the SHFE lead 2505 contract. In the Jiangsu-Zhejiang region, JCC lead was quoted at 16,660-16,740 yuan/mt, with premiums of 0-20 yuan/mt against the SHFE lead 2505 contract. Today, the central bank announced RRR cuts and interest rate cuts, and the SHFE lead futures market once approached 16,900 yuan/mt. However, due to poor fundamental performance, the gains were retraced several times during the session. Suppliers shipped goods in line with market conditions, with some reducing quotations or quoting at premiums due to decreased cargo availability in warehouses. Quotations for cargoes self-picked up from production sites at other smelters remained at discounts (against the SMM 1# lead average price). The secondary lead market saw chaotic quotations, with smelters reducing shipments and standing firm on quotes due to losses. Some regions still offered discounts, while quotations for secondary refined lead narrowed to discounts of 50-0 yuan/mt against the SMM 1# lead average price. Those standing firm on quotes offered premiums of 50 yuan/mt. Downstream enterprises made just-in-time procurement based on demand, with increased inquiry enthusiasm, leading to a regional improvement in spot market transactions.
Other markets: Today, the SMM 1# lead price fell by 50 yuan/mt from the previous trading day. In Henan, traders offered discounts of 100-120 yuan/mt against the SHFE lead 2506 contract. In Jiangxi, smelters offered ex-factory premiums of 50-150 yuan/mt against the SMM 1# lead average price, with some transactions concluded. In Hunan, smelters offered ex-factory discounts of 50-30 yuan/mt against the SMM 1# lead average price, while traders offered discounts of 60-50 yuan/mt against the SMM 1# lead average price, with sluggish spot transactions. In Yunnan, suppliers offered discounts of 250 yuan/mt against the SMM 1# lead average price, with some transactions concluded. Lead smelters shipped goods in line with market conditions, with downstream enterprises generally adopting a wait-and-see attitude and making only small-scale just-in-time procurement, resulting in relatively sluggish overall spot market transactions.
