There is a significant difference in refined lead quotes, downstream enterprises purchase as needed, and smelters are still incurring losses [SMM Weekly Review of Secondary Refined Lead]

SMM News on May 23:

During the week, most secondary refined lead producers did not release goods, while those who did offered quotations with significant differences. The mainstream ex-factory quotations for tax-included refined lead were quoted at discounts of 50-0 yuan/mt against the SMM 1# lead average price, with a few sources offering discounts exceeding 100 yuan/mt. Downstream buyers continued to purchase as needed. Currently, secondary refined lead producers are facing significant cost pressure, making it difficult to release goods. Reductions and suspensions in production are common among smelters. It is reported that after some individual secondary lead smelters halted production, they purchased refined lead from other manufacturers to fulfill long-term contracts. Enterprises stated that this method of trading and transferring goods would at least prevent losses. Such a "distorted" market situation reflects the unhealthy state of the industry. As of May 23, 2025, the theoretical comprehensive profit and loss value for large-scale secondary lead enterprises was -523 yuan/mt, while for small and medium-sized secondary lead enterprises, it was -744 yuan/mt.

》Subscribe to view historical SMM metal spot prices