Lead Prices Consolidate, Downstream Players Remain Cautious and Wait-and-See [SMM Weekly Review of Refined Lead Spot Market]

In the spot market, the SMM 1# lead price was under pressure and consolidated around the 16,800 yuan/mt level this week (June 16-20, 2025). Recently, most domestic secondary lead enterprises have been reducing or halting production. Coupled with the increase in routine maintenance at primary lead enterprises in late June, the supply of lead ingots has relatively tightened. In the short term, the relatively strong performance of lead prices has stimulated some downstream enterprises to purchase on demand. However, the off-season trend in the lead-acid battery market remains unchanged, and downstream enterprises are cautious about purchasing high-priced goods. In terms of pricing, suppliers slightly lowered their premiums and discounts towards the end of the week. Suppliers in Henan province offered discounts of 0-25 yuan/mt against SMM 1# lead or discounts of 200-180 yuan/mt against the SHFE lead 2507 contract. Smelters in Hunan province were reluctant to sell and adopted a wait-and-see attitude, offering discounts of 20-0 yuan/mt against SMM 1# lead. Some suppliers in the region, fearing a price drop, sold off their inventory, offering discounts of 180-200 yuan/mt against the SHFE lead 2507 contract. Lead prices fluctuated at highs, and with the approaching mid-year, some enterprises postponed their purchasing needs, resulting in generally weak trading activity in the spot market.

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