SMM Shanghai and Other #1 Lead Markets: SHFE Lead's Operating Center Moves Lower, Downstream Enterprises Only Make Just-in-Time Procurement [SMM Midday Review]

        SMM May 16 News: In the Shanghai market, Chihong lead was quoted at 16,935-16,960 yuan/mt, with quotations against the SHFE lead 2506 contract at premiums of 20-30 yuan/mt. Honglu lead was quoted at 16,900-16,930 yuan/mt, with quotations against the 2506 contract at discounts of 20-0 yuan/mt. In the Jiangsu-Zhejiang region, JCC lead was quoted at 16,900-16,930 yuan/mt, with quotations against the 2506 contract at discounts of 20-0 yuan/mt. The center of SHFE lead operations shifted downward compared to the previous day. Suppliers sold goods in line with market conditions, with a few enterprises reluctant to sell at low prices, causing quotations to shift from discounts to premiums. Meanwhile, cargoes self-picked up from primary lead smelters were quoted at discounts of 50 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price ex-factory. The availability of secondary lead in the market slightly increased, with smelters offering more quotations. Secondary refined lead was quoted at discounts of 120-0 yuan/mt against the SMM 1# lead average price ex-factory. Downstream enterprises mainly made just-in-time procurement, preferring low-priced cargoes with large discounts. Trading in the spot market was sluggish.

        Other markets: Today, the SMM 1# lead price fell by 25 yuan/mt compared to the previous trading day. During the day, SHFE lead was in the doldrums. Suppliers in Henan province quoted prices at discounts of 180-160 yuan/mt against the SHFE lead 2506 contract. Smelters in Hunan province quoted prices at discounts of 30-0 yuan/mt against the SMM 1# lead average price, while traders quoted prices at discounts of 50-30 yuan/mt against the SMM 1# lead average price. Smelters in Anhui and Jiangxi provinces offered relatively firm quotations, with prices quoted at premiums of 100 yuan/mt against the SMM 1# lead average price ex-factory. In Guangdong province, suppliers quoted prices for cargoes self-picked up from production sites at premiums of 25-50 yuan/mt against the SMM 1# lead average price. After the lead price weakened, downstream enterprises were cautious about purchasing due to fear of further price declines, and the overall spot market was sluggish.