SMM Shanghai and other 1# lead markets: The center of lead price movement shifts downward, and trading in the spot market improves relatively [SMM Midday Review]

        SMM News on June 3: In the Shanghai market, Chihong and Honglu lead were quoted at 16,530-16,550 yuan/mt, with quotations at discounts to parity against the SHFE lead 2506/2507 contracts. The center of SHFE lead prices shifted further downward compared to before the holiday, with suppliers adjusting their quotations accordingly. Specifically, quotations for cargoes self-picked up from primary lead smelters in major producing areas were at discounts of 50 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price, ex-works. Secondary lead smelters were more reluctant to sell at lower prices, resulting in limited market quotations. Spot order quotations were at premiums of 0-100 yuan/mt against the SMM 1# lead price, ex-works, while a few traders offered quotations at discounts of 50-0 yuan/mt, ex-works. Downstream enterprises gradually resumed market activities after the holiday, with some purchasing on dips as needed, but many remained cautious and adopted a wait-and-see attitude. Spot order transactions in some regions improved slightly compared to before the holiday.

        Other markets: Today, the SMM 1# lead price fell by 25 yuan/mt from the previous trading day. In Henan, suppliers offered quotations at discounts of 180-140 yuan/mt against the SHFE lead 2507 contract, ex-works, with some transactions concluded. In Hunan, smelters offered quotations at discounts of 50-30 yuan/mt against the SMM 1# lead average price, ex-works, while traders offered quotations at discounts of 200-150 yuan/mt against the SHFE lead 2507 contract, ex-works. In Jiangxi, suppliers offered quotations at discounts of 80 yuan/mt against the SHFE lead 2507 contract, ex-works. Downstream consumption was absent during the Dragon Boat Festival holiday, and lead prices weakened after the holiday. Some downstream enterprises purchased on dips as needed, and spot cargo transactions improved regionally.