SMM Shanghai and Other #1 Lead Markets: SHFE Lead's Operating Center Moves Lower, Regional Spot Market Transactions Improve Slightly [SMM Midday Review]

        SMM reported on May 22: In the Shanghai market, lead from Chihong Zn&Ge and Honglu was quoted at 16,745-16,765 yuan/mt, with quotations against the SHFE lead 2506 contract at discounts of 20-0 yuan/mt. In Jiangsu and Zhejiang, JCC lead was quoted at 16,745-16,765 yuan/mt, with quotations against the 2506 contract at discounts of 20-0 yuan/mt. The center of SHFE lead prices gradually moved lower, with some suppliers expanding their discount quotations. Meanwhile, quotations for cargoes self-picked up from primary lead smelters remained at discounts of 30 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price ex-factory. The secondary lead market saw chaotic quotations, with secondary refined lead in some regions quoted at discounts of 140-50 yuan/mt against the SMM 1# lead price ex-factory, and a few at premiums of 50-75 yuan/mt. Downstream enterprises maintained a strong wait-and-see sentiment, with some making purchases as needed at lower prices. Regional transactions in the spot market were slightly better.

        Other markets: Today, the SMM 1# lead price fell by 100 yuan/mt from the previous trading day. Suppliers in Henan quoted prices at discounts of 25-0 yuan/mt against the SMM 1# lead price, or at discounts of 180-150 yuan/mt against the SHFE lead 2506 contract ex-factory. In Hunan, suppliers quoted prices at discounts of 30 yuan/mt against the SMM 1# lead average price, or at discounts of 180 yuan/mt against the SHFE lead 2506 contract. Smelters focused on shipments under long-term contracts, with fewer spot order quotations. In Guangdong, suppliers' cargoes self-picked up from production sites were transacted at just-in-time procurement levels with premiums of 50 yuan/mt against the SMM 1# lead average price. Today, lead prices rebounded and moved higher, with downstream enterprises still focusing on just-in-time procurement. Transactions in the spot market were sluggish.