SMM Shanghai and other 1# lead markets: Discount quotes in the spot lead market decrease, downstream enterprises adopt a wait-and-see attitude and reduce procurement [SMM Midday Review]

        SMM News on June 10: In the Shanghai market, Chihong and Honglu lead were quoted at 16,800-16,850 yuan/mt, with quotations at discounts of 50-0 yuan/mt against the SHFE lead 2507 contract. SHFE lead held up well, and there was limited availability of spot cargoes in the Jiangsu, Zhejiang, Shanghai markets. Quotation discounts remained stable compared to the previous day. During this period, some electrolytic lead smelters in certain regions no longer offered discounted quotations for cargoes self-picked up from production sites. The mainstream production areas saw electrolytic lead quotations at premiums of 0-125 yuan/mt against the SMM 1# lead average price. Secondary lead smelters generally reduced or halted production, either suspending quotations or offering secondary refined lead quotations at parity with the SMM 1# lead average price for ex-factory delivery. After the rise in lead prices, downstream enterprises mostly adopted a wait-and-see attitude, with fewer inquiries and sluggish spot order transactions.

        Other markets: Today, the SMM 1# lead price increased by 100 yuan/mt compared to the previous trading day. In Henan, smelters offered quotations at premiums of 0-30 yuan/mt against the SMM 1# lead average price, while suppliers offered quotations at discounts of 180-150 yuan/mt against the SHFE lead 2507 contract for ex-factory delivery. In Hunan, smelters' quotations turned to premiums, reaching 30 yuan/mt against the SMM 1# lead average price for ex-factory delivery, and traders offered quotations at premiums of 0-30 yuan/mt against the SMM 1# lead average price for ex-factory delivery. In Jiangxi, smelters offered quotations at a premium of 130 yuan/mt against the SMM 1# lead average price for ex-factory delivery. As the delivery date approached, some suppliers intended to transfer their cargoes to delivery warehouses and refused to budge on prices for ex-factory delivery. During the day, SHFE lead continued its rebound trend. Downstream enterprises made just-in-time procurement, and the availability of spot cargoes in the market relatively decreased, resulting in slightly sluggish spot cargo transactions.