SMM News on May 12: In the Shanghai market, Chihong lead was priced at 16,970-17,000 yuan/mt, with quotes of premiums of 0-20 yuan/mt against the SHFE lead 2506 contract. Honglu lead was priced at 16,950-16,970 yuan/mt, with quotes of discounts of 30-10 yuan/mt against the SHFE lead 2506 contract. In the Jiangsu-Zhejiang region, JCC and Jinde lead were quoted at 16,960-16,980 yuan/mt, with quotes of discounts of 20-0 yuan/mt against the SHFE lead 2505 or 2506 contracts. As the progress of Sino-US trade negotiations improved, non-ferrous metals generally strengthened, with SHFE lead also fluctuating upward and approaching the 17,000 yuan/mt threshold. Suppliers were mostly active in selling, with premiums and discounts in quotes being lowered. Additionally, the discounts in quotes for cargoes self-picked up from primary lead smelters against futures were relatively small compared to last week. In the secondary lead sector, due to production cuts at smelters, there were not many quotes. Some secondary refined lead was quoted at ex-factory premiums of 50 yuan/mt against the SMM 1# lead average price. Downstream enterprises only made just-in-time procurement, and some cargoes with discounts could be traded to a certain extent.
Other markets: Today, the SMM 1# lead price increased by 125 yuan/mt compared to the previous trading day. As SHFE lead strengthened during the day and the spot-futures price spread widened, some suppliers in Henan province slightly expanded their discounts to 180-160 yuan/mt against the SHFE lead 2506 contract. Smelters in Hunan province maintained quotes of discounts of 30 yuan/mt against the SMM 1# lead average price, while traders offered discounts of around 50 yuan/mt against the SMM 1# lead average price. Market trading conditions improved compared to last Friday. Downstream enterprises mainly made just-in-time procurement, with some enterprises slightly restocking in anticipation of the expected decline in refined lead supply in late May. The spot market situation slightly improved.
