Weak Off-Season Demand, Secondary Crude Lead Fluctuates in the Short Term [SMM Secondary Crude Lead Weekly Review]

SMM May 22 update:

Secondary crude lead prices edged up this week, with the average tax-exclusive transaction price across multiple regions reaching 15,300 yuan/mt, up 75 yuan week-on-week, a 0.5% increase. Affected by environmental protection checks, some smelters cut production, and market supply tightened. The lead-acid battery industry was in the consumption off-season, with insufficient end-user orders. Downstream buyers only made just-in-time procurement, and market trading activity was weak. In addition, imports of crude lead decreased significantly, and the impact of external supply slowed down. The short-term raw material shortage was difficult to alleviate, and off-season demand was also unlikely to rebound notably, with procurement intensity remaining at low levels. Market supply and demand maintained a tight balance, and prices lacked clear momentum for change. Secondary crude lead prices are expected to move sideways in the near term.