SMM Shanghai and Other 1# Lead Markets: Limited Demand from Downstream Enterprises, Spot Lead Generally Traded at a Discount [SMM Midday Review]

        SMM, May 19: In the Shanghai market, Chihong lead was quoted at 16,875-16,905 yuan/mt, with quotations against the SHFE lead 2506 contract at premiums of 0-20 yuan/mt. Honglu lead was quoted at 16,865-16,885 yuan/mt, with quotations against the 2506 contract at discounts of 10-0 yuan/mt. In the Jiangsu-Zhejiang region, JCC lead was quoted at 16,855-16,885 yuan/mt, with quotations against the 2506 contract at discounts of 20-0 yuan/mt. SHFE lead was in the doldrums, and suppliers adjusted their quotations in line with market conditions. Some premiums were lowered, while others remained unchanged from last Friday. In major producing areas, ex-factory quotations for cargoes self-picked up from primary lead smelters were maintained at discounts of 50 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price. Quotations for secondary refined lead were at discounts of 130-0 yuan/mt against the SMM 1# lead average price. Downstream enterprises made just-in-time procurement only, with some large enterprises focusing on purchases under long-term contracts. The spot order market was sluggish.

        Other markets: Today, the SMM 1# lead price fell by 50 yuan/mt from the previous trading day. SHFE lead was in the doldrums during the day. Suppliers in Henan province quoted prices at discounts of 180-150 yuan/mt against the SHFE lead 2506 contract. Smelters in Hunan province faced difficulties in closing deals at discounts of 30-0 yuan/mt against the SMM 1# lead average price, while traders quoted prices at discounts of 200 yuan/mt against the SHFE lead 2506 contract. Smelters in Anhui and Jiangxi provinces had limited inventory and quoted ex-factory prices at premiums of 100 yuan/mt against the SMM 1# lead average price. Suppliers in Guangdong province closed deals on cargoes self-picked up from production sites at premiums of 0-50 yuan/mt against the SMM 1# lead average price. Lead prices continued to weaken, and downstream enterprises maintained just-in-time procurement, showing poor enthusiasm for building inventory at lower prices. The overall spot market was sluggish.