Secondary Lead Spot Order Quotes Remain Firm, Beware of Raw Material Price Increases Squeezing Profit Margins [SMM Secondary Refined Lead Weekly Review]

SMM December 5:

Spot supply of secondary refined lead remained tight during the week, with suppliers holding firm offers. Tax-included ex-works prices ranged from a discount of 50 yuan/mt to a premium of 50 yuan/mt against the SMM #1 lead average price. Limited supply was available in Central China, where traders offered ex-works at a discount of 125 yuan/mt. Downstream battery producers, noticing the rebound in lead prices, restocked promptly at lower levels, showing strong purchasing activity during the week. Due to weak secondary refined lead production, SMM expects spot supply of secondary lead to remain scarce next week, with prices likely to stay firm.

As retirement volumes of waste lead-acid batteries declined and recycling prices rose, raw material costs for secondary lead smelters increased and showed signs of further growth. Although lead prices saw a significant catch-up rise this week, improving the overall profit/loss situation for secondary lead enterprises, caution is still needed against continued raw material price increases squeezing profit margins. As of December 5, 2025, the theoretical comprehensive profit/loss for large-scale secondary lead enterprises was 363 yuan/mt, while that for small and medium-sized enterprises was 155 yuan/mt (by-product revenues in the model exclude tin and antimony).

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