Weak Consumption Recovery Coupled With Supply Tightening, Lead Prices Continue Sideways Consolidation [SMM Weekly Review of Refined Lead Spot Market]

Spot market, supply and demand both declined this week (September 1-5, 2025). Downstream peak season consumption showed mediocre performance, coupled with increased maintenance at secondary refined lead facilities. The SMM #1 lead average price fluctuated rangebound around 16,725 yuan/mt this week. In Henan, suppliers narrowed their discounts against SMM #1 lead to 25-0 yuan/mt, while some offered discounts of 100-120 yuan/mt against the SHFE lead 2509 contract. Hunan saw relatively ample circulating supply, with branded lead smelters expanding discounts against SMM #1 lead by 50-30 yuan/mt for rigid demand transactions. Speculators sold at discounts of 180-200 yuan/mt against the SHFE lead 2510 contract to recoup funds. For secondary refined lead, regional supply disparities of lead ingots were evident, with widening divergences in smelter shipments. Although some smelters still held back sales with premiums of 25 yuan/mt against SMM #1 lead due to profit losses, certain regions saw secondary refined lead supplies offered at discounts of 100-50 yuan/mt against SMM #1 lead.