The high-priced spot order supply of refined lead is gradually being accepted by downstream buyers. The high cost of raw materials has led to a sustained state of losses for enterprises [SMM Weekly Review of Secondary Refined Lead]

SMM July 25 News:

This week, there were few sources of secondary refined lead available at a discount to ex-factory prices. The mainstream ex-factory prices were at a premium of 0-100 yuan/mt against the SMM #1 lead average price, with some sources even at a premium of 130 yuan/mt delivered to nearby downstream customers (with a small volume of transactions). Recently, downstream battery producers' rigid demand has leaned towards in-plant inventory of primary lead smelters, leading to a significant decline in the in-plant inventory of primary lead smelters. The weekly inventory of delivery brand lead fell below 10,000 mt. At this time, high-priced sources of secondary refined lead were gradually accepted by downstream customers, which was also one of the reasons for the reduction in the weekly inventory of secondary lead smelters.

Due to the fact that the price of raw material scrap batteries did not follow the decline in lead prices, the costs of secondary lead smelters remained high. Even when selling at a premium, it was not enough to make up for the difference. As of July 25, 2025, the theoretical comprehensive profit and loss value for large-scale secondary lead enterprises was -481 yuan/mt, and for small- and medium-scale secondary lead enterprises, it was -706 yuan/mt.

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