Macro atmosphere in the doldrums compounded by increasing LME inventory, lead prices continue to be in the doldrums [SMM Refined Lead Spot Market Weekly Review]

In the spot market, this week (August 18-22, 2025), the SMM #1 lead average price continued to be in the doldrums. The peak consumption season for lead-acid batteries did not show a significant recovery. Mid-week, LME lead inventory surged by over 20,000 mt, dragging down both domestic and overseas lead prices. In the spot market, smelters mainly focused on shipments under long-term contract. Suppliers in Henan maintained a slight discount for SMM #1 lead, with some suppliers offering discounts of 100-130 yuan/mt against the SHFE 2509 contract, and individual suppliers transacted at a 150 yuan/mt discount against the SHFE 2509 contract. In Hunan, branded lead smelters traded at a 25-10 yuan/mt discount against SMM #1 lead, while some non-branded lead smelters or suppliers quoted at a 30-50 yuan/mt discount against SMM #1 lead or a 150-160 yuan/mt discount against the SHFE 2509 contract. For secondary refined lead, as lead prices weakened, losses for secondary lead producers increased, leading to reluctance to sell at low prices, and some enterprises suspended shipments. Secondary refined lead was quoted at a 20-30 yuan/mt discount against the SMM #1 lead average price, with spot orders leaning towards the primary lead market, resulting in sluggish transactions for secondary refined lead.