SMM May 8 News:
This week, SMM #1 lead ingot prices retreated after rapid rise, with the center fluctuating downward in the second half of the week. On the raw material side, scrap battery procurement prices were generally stable with slight rise. A few smelters in central and east China took the lead in raising scrap battery procurement prices, followed by most smelters successively raising their quotes driven by tight raw material inventories.
Currently, scrap battery retirement volumes remain low. Combined with recycling shutdowns and transportation restrictions during the Labour Day holiday, supply circulation tightened periodically, highlighting inventory pressure on raw materials at smelters. The number of enterprises reducing or halting production increased, and the short-term shortage pattern is difficult to change. Looking ahead, scrap battery procurement prices are expected to remain generally stable with slight rise: raising prices would further exacerbate losses, while lowering prices is constrained by low retirement volumes and tight inventories, leaving limited overall room for fluctuations.
