[SMM Announcement] Explanation of SMM Crude Lead Delivered Duty Paid Price Assessment Methodology

Dear Users,

Greetings! Thank you for your continued attention and support for Shanghai Metals Market (SMM)! The SMM Crude Lead Delivered Duty Paid Port Price has now been officially launched. The price assessment methodology is described as follows.

I. SMM Price Assessment Methodology General Provisions

Shanghai Metals Market (hereinafter referred to as SMM) is a fully independent third-party service provider. SMM does not participate in any substantive transactions but maintains close communication with buyers or sellers in its capacity as a market observer or organizer, and provides relevant services to the market. Through communication and exchanges with industry professionals, SMM continuously develops, reviews, and revises its methodology, adopting the most common product specifications, trade terms, and trade conditions in the industry, and giving equal attention to all normal transactions that meet specification standards. SMM reserves the right to exclude from its price assessments any price data or information deemed less reliable or unrepresentative. SMM reports daily spot transaction prices in China's spot market, commonly referred to as SMM prices. SMM prices are generated strictly in accordance with defined methodologies. SMM has methodology definitions for all metal product prices it reports. All methodologies and definitions are published on SMM's official website (www.smm.cn) so that all market participants can understand the processes and standards of SMM price reporting. The SMM price assessment methodology serves as the basis and foundation for the generation of SMM prices. To reflect the actual conditions of the spot market, SMM will make necessary revisions to its price assessment methodology. Any changes to the price assessment methodology will be published on SMM's official website at least 30 days in advance. Any questions or suggestions regarding SMM prices or the price assessment methodology may be directed to SMM client services as published on the website. This document specifies the standards and management methods for the formulation of the SMM Crude Lead Delivered Duty Paid Port Price. The purpose of establishing this standard is to create a transparent and verifiable SMM pricing mechanism and to provide market participants with an important pricing benchmark.

II. Formation of the SMM Crude Lead Delivered Duty Paid Port Price

2.1. Definition

The SMM Crude Lead Delivered Duty Paid Port Price is an indicative price formed and published by SMM in accordance with this methodology, which can be used by both parties to a transaction as a reference for the settlement of imported recycled crude lead spot trades. This price reflects: the duty-paid self pick-up price of imported recycled crude lead at major seaports on each business day in China's spot market; major seaports include Shanghai, Ningbo, Guangzhou, etc.; lead content ≥98%, with defined antimony and tin content (tin 0.1–0.25%; antimony 0.1–0.35%).

2.2. Introduction to Price Formation

SMM collects data for evaluating imported secondary crude lead spot prices through price collection (i.e., collecting raw data information that meets SMM standards), including quotations from buyers and sellers for transactions not concluded on the previous day provided by price submitters (i.e., data providers), actual spot transaction prices, expected quotations or % change for imported secondary crude lead on the day, etc. The SMM crude lead CIF duty-paid price aims to guide the quotation range of the imported secondary crude lead market for the day. The data collection and evaluation (calculation) of the SMM crude lead CIF duty-paid price, as well as daily management, are carried out by the SMM secondary lead business team (consisting of three members: Position A, Position B, and a price manager).

2.3. Generation of Pricing Methodology

SMM price collection personnel collect prices from price collection contacts at price submitters every day from 9:00 to 11:30 (each trading day, consistent with SHFE trading days) via telephone, QQ, and WeChat, gathering intended prices, transaction prices, and related data for imported secondary crude lead at China's major seaports (price data submitted after 11:30 will not be used as a basis for the day's price evaluation). All instant messaging content, email communications, and records of any face-to-face communications will be archived, and details of telephone communications will be summarized and entered into the database. All paper records must be signed by price collection personnel and retained permanently. SMM price analysts collect price data in accordance with price collection standards, and combine the preliminary price data results with the corresponding market's spot conditions, futures conditions, policies, industry status, market transactions, supply and demand relationships, inventory levels, as well as other significant political, economic, and natural factors, to ultimately derive a preliminary raw dataset. SMM price analysts must comply with relevant SMM compliance policies when reporting to their supervisors any communications from market participants that are coerced or threatened, or any induced offers attempting to influence evaluation results.

2.4 Price Publication

The SMM crude lead CIF duty-paid price is published at 11:40 Beijing time on each trading day on the SMM official website in both Chinese and English. (Excluding China's statutory holidays and weekends.)

The deadline for price collection is 11:30 AM, and the 10-minute period between 10:30 and 10:40 is used for data verification and evaluation to calculate the final published secondary lead spot price. SMM encourages price submitters not to wait until the final deadline to submit data, in order to ensure that SMM price analysts have sufficient time to verify the data before incorporating it into the valuation process. The release time may also be affected by various emergencies and force majeure factors, such as power outages and natural disasters. If such situations occur, SMM will make every effort to publicly inform the market of the delayed price release time as early as possible. Prices published by SMM are available to any client who has subscribed to SMM services. Prices published by SMM are copyright-protected and may not be distributed or used for commercial gain by any third party that has not entered into an explicit agreement with SMM.

III. Methodology Changes

All markets evolve, and SMM has a responsibility to ensure that its market-specific methodologies evolve in tandem. Therefore, based on industry feedback, SMM will periodically conduct internal reviews of the appropriateness of its methodologies and make modifications to all substantive but non-urgent potential issues. SMM will follow a formal external consultation process before publishing significant changes, providing a notice period of at least 28 days and inviting industry participants to comment, unless special circumstances, particularly force majeure (natural disasters, wars, exchange bankruptcies, etc.), necessitate a shortened notice period. SMM is committed to carefully reviewing all comments submitted regarding methodology changes, but in certain cases, it may be necessary to make changes to the methodology against the wishes of some market participants. In addition, SMM has a formal methodology consultation process. We are fully aware of the importance of price information to industry development and will therefore continue to invest resources to ensure that the guidance prices we publish maintain a high level of accuracy and timeliness. We also welcome valuable opinions and suggestions from users to work together with us in promoting the healthy and sustainable development of the lead alloy market. Best regards!

SMM Industry Research - Lead & Zinc Category

Apr 2026