SMM News on June 19: In the Shanghai market, Chihong and Honglu lead were quoted at 16,880-16,940 yuan/mt, with quotations against the SHFE lead 2507 contract at discounts of 50-0 yuan/mt. In the Jiangsu, Zhejiang, Shanghai market, JCC lead was quoted at 16,930-16,940 yuan/mt, with quotations against the SHFE lead 2507 contract on par with the contract. Benefiting from the news that SHFE would allow overseas traders to participate, lead prices surged strongly in the morning, approaching the 17,000 yuan/mt threshold. Suppliers actively quoted and sold, with more quotations than yesterday. Among them, primary lead smelters mostly refused to budge on prices when selling, with quotations from major producing areas at discounts of 30 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price. Secondary lead enterprises quoted in line with the market, with secondary refined lead quotations at discounts of 75 yuan/mt to premiums of 25 yuan/mt against the SMM 1# lead average price ex-works. Downstream enterprises, on the other hand, had a strong wait-and-see sentiment, and their acceptance of high-priced lead declined. There were a few just-in-time procurement deals in the major consumption areas around Jiangsu, Zhejiang, and Shanghai.
Other markets: Today, the SMM 1# lead price increased by 75 yuan/mt from the previous trading day. Smelters in Henan province quoted ex-works on par with the SMM 1# lead, with individual smelters quoting at a premium of 50 yuan/mt due to limited inventory. Traders quoted ex-works at discounts of 180-150 yuan/mt against the SHFE lead 2507 contract. Smelters in Hunan province generally quoted ex-works on par with the SMM 1# lead, with traders quoting ex-works at discounts of 210-180 yuan/mt against the SHFE lead 2507 contract. Suppliers in Jiangxi province quoted ex-works at a premium of 100 yuan/mt against the SMM 1# lead. During the day, SHFE lead prices rebounded and caught up, easing the fear of price declines among some suppliers. Downstream enterprises maintained just-in-time procurement, and regional transactions in the spot market were moderate.
