SMM Shanghai and Other #1 Lead Market: Downstream Enterprises Were Cautious in Purchasing Before the Holiday, with Spot Market Generally Trading at a Discount [SMM Midday Review]

        SMM, May 29: In the Shanghai market, lead from Chihong Zn&Ge and Honglu was quoted at 16,725-16,780 yuan/mt, with quotations against the SHFE lead 2507 contract at a contango of 20-0 yuan/mt. SHFE lead maintained a weak consolidation, and suppliers' enthusiasm for selling was moderate, with fewer quotations compared to yesterday. During this period, the quotations for cargoes self-picked up from primary lead smelters in mainstream production areas were at a contango of 60 yuan/mt to a premium of 100 yuan/mt against the SMM 1# lead average price. Secondary lead smelters showed strong reluctance to sell at low prices, with some quotations at a contango of 50-0 yuan/mt and some at a premium of 50-100 yuan/mt against the SMM 1# lead average price. Downstream enterprises mostly adopted a wait-and-see attitude and were cautious in purchasing. Some enterprises planned to take holidays, and there was no need to replenish spot orders for production before the holiday. Trading in the spot market did not show significant improvement.

        Other markets: Today, the SMM 1# lead price remained unchanged from the previous trading day. In Henan, suppliers' quotations were at a contango of 200-150 yuan/mt against the SHFE lead 2507 contract, with some transactions driven by immediate needs. In Hunan, smelters' quotations were at a contango of 40-20 yuan/mt against the SMM 1# lead average price, and individual suppliers' quotations were at a contango of 60-50 yuan/mt against the SMM 1# lead average price. In Guangdong, suppliers' quotations were at a premium of 0-50 yuan/mt against the SMM 1# lead or at a contango of 200 yuan/mt against the SHFE lead 2507 contract. Today, lead prices consolidated sideways. As the Dragon Boat Festival holiday approached, downstream enterprises had little intention to restock, and trading in the spot market was sluggish.