Performance during peak consumption season falls short of expectations, with upward momentum in lead prices slightly lacking. [SMM Weekly Review of Refined Lead Spot Market]

In the spot market, the SMM #1 lead price strengthened at the beginning of the week (August 11-15, 2025) amid rising expectations for a US Fed interest rate cut and a general rally in non-ferrous metals. However, the peak consumption season for lead-acid batteries underperformed, and lead prices were pressured to pull back due to the drag from LME lead. In the spot market, smelters continued to focus on shipments under long-term contracts. Suppliers in Henan province shifted their quotes for SMM #1 lead to a discount of 50-0 yuan/mt, while some suppliers offered discounts of 120-150 yuan/mt against the SHFE lead 2509 contract. Brand lead smelters in Hunan province adjusted their premiums for SMM #1 lead to parity, but transactions were difficult. Traders in Hunan province closed deals at a discount of 20-0 yuan/mt. For secondary refined lead, smelters' sales enthusiasm was moderate at the beginning of the week, with mainstream tax-included ex-factory prices ranging from a discount of 50 yuan/mt to a premium of 50 yuan/mt against the SMM #1 lead average price. As the SHFE lead 2508 contract approached delivery this week, there were still expectations for a continued increase in social inventory of refined lead in China. Downstream battery manufacturing enterprises had limited rigid demand and were generally adopting a wait-and-see attitude.