SMM Shanghai and other No.1 lead markets: SHFE lead pulls back after reversing trend, with better transactions for cargoes self-picked up from primary lead production sites [SMM midday review]

        SMM News on July 11: In the Shanghai market, Chihong and Honglu lead were quoted at 17,060-17,100 yuan/mt, with quotations at discounts of 40-0 yuan/mt against the SHFE lead 2508 contract. In the Jiangsu-Zhejiang market, Jijin and JCC lead were quoted at 17,080-17,100 yuan/mt, with quotations at discounts of 20-10 yuan/mt against the SHFE lead 2508 contract. SHFE lead prices pulled back, prompting some suppliers to narrow their quotation discounts. However, downstream enterprises showed limited enthusiasm for purchasing warehouse cargoes, with few inquiries. Additionally, there were still differences in the sales strategies of primary lead smelters. Some enterprises expanded their discounts to sell, while others held firm on their quotations. The spot order quotations in the main producing areas were at discounts of 50 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price for factory delivery. Secondary lead smelters were reluctant to sell at low prices, with some refusing to budge on prices for delivery. Secondary refined lead quotations were at discounts of 100-0 yuan/mt against the SMM 1# lead average price for factory delivery, with a few at premiums of 50-75 yuan/mt. Downstream enterprises purchased on a need-to-buy basis and at low prices, preferring to purchase cargoes self-picked up from primary lead smelters. Some demand was diverted to secondary lead, while warehouse cargo transactions remained sluggish.

        Other markets: Today, the SMM 1# lead price fell by 75 yuan/mt compared to the previous trading day. In Henan, suppliers' quotations were at discounts of 200-150 yuan/mt against the SHFE lead 2508 contract for factory delivery, with improved transaction activity and orders being placed for delivery next week. However, there was still much price negotiation. In Hunan, smelters' quotation discounts slightly expanded, with quotations at discounts of 20-10 yuan/mt against the SMM 1# lead average price for factory delivery. Small smelters' lead quotations could be at discounts of 50-40 yuan/mt, and traders' quotations for the SHFE lead 2508 contract were at a discount of 220 yuan/mt. In Jiangxi, suppliers' quotations were at premiums of 75-100 yuan/mt against the SMM 1# lead average price for factory delivery, with some transactions. In Yunnan, suppliers' quotations were at discounts of 230-220 yuan/mt against the SMM 1# lead average price for factory delivery. Lead prices were in the doldrums, with significant differences in purchasing strategies among downstream enterprises. Some enterprises had a strong wait-and-see sentiment, while others purchased on a need-to-buy basis and at low prices, with much price negotiation. The spot order market saw regional improvements in transactions.