Secondary lead smelters were trapped in a dilemma of "the more they produce, the more they lose," with sluggish transactions during the week [SMM Secondary Refined Lead Weekly Review]

SMM August 29:

Suppliers showed low willingness to deliver goods, with limited spot secondary refined lead supply in the market. The mainstream transaction prices were at a discount of 25-0 yuan/mt against the SMM #1 lead average price for tax-included ex-factory prices, and around 950 yuan/mt below the SMM #1 lead average price for tax-excluded ex-factory prices. Downstream enterprises exhibited weak inquiry and purchasing enthusiasm, resulting in sluggish transactions of secondary refined lead.

Lead prices reversed to weaken. Although scrap battery prices followed with minor declines, this did not alter the loss-making reality. Particularly after the withdrawal of local government preferential policies, secondary lead smelters lost an important source of capital support, further weakening their loss-bearing capacity. As of August 29, 2025, the theoretical comprehensive profit/loss for large-scale secondary lead enterprises stood at -363 yuan/mt, while medium and small-scale secondary lead enterprises recorded -582 yuan/mt.

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