SMM Shanghai and other No.1 lead markets: SHFE lead weakened and consolidated, with significant divergence in spot market transactions [SMM midday review]

        SMM reported on July 1: In the Shanghai market, Chihong and Honglu lead were quoted at 17,025-17,100 yuan/mt, with discounts of 20-10 yuan/mt against the SHFE lead 2508 contract or discounts of 50 yuan/mt against the SHFE lead 2507 contract. In the Jiangsu and Zhejiang markets, Jijin and JCC lead were quoted at 17,080-17,090 yuan/mt, with discounts of 30-20 yuan/mt against the SHFE lead 2508 contract. SHFE lead remained in a weak consolidation phase, with suppliers shipping goods according to market conditions. Some suppliers reduced their quoting enthusiasm due to fewer downstream inquiries. Additionally, the situation of cargoes self-picked up from primary lead smelters was similar, with some being sold at discounts and others quoted at slightly firmer prices. Downstream enterprises had limited demand, with inquiries being more dispersed and more bargaining taking place. It was difficult for buyers and sellers to reach a consensus, resulting in sluggish transactions in the spot market.

        Other markets: Today, the SMM 1# lead price fell by 25 yuan/mt compared to the previous trading day. In Henan, smelters quoted at premiums of 0-20 yuan/mt against the SMM 1# lead price ex-factory, while traders quoted at discounts of 180-150 yuan/mt against the SHFE lead 2508 contract ex-factory. In Hunan, smelters quoted at discounts of 50-30 yuan/mt against the SMM 1# lead price ex-factory, while traders quoted at discounts of 50-40 yuan/mt against the SMM 1# lead price or discounts of 250-200 yuan/mt against the SHFE lead 2508 contract, with poor transaction results. In Yunnan, suppliers quoted at discounts of 220-200 yuan/mt against the SMM 1# lead price ex-factory, achieving a small volume of transactions. Lead prices were in the doldrums, with downstream enterprises exhibiting strong wait-and-see sentiment due to fear of price declines. Overall transactions in the primary lead spot market were relatively light.