Lead Prices Fluctuated Downward During the Week, Downstream Cautious Amid Fear of Price Decline, Purchase Willingness Low [SMM Refined Lead Spot Market Weekly Review]

In the spot market this week (6.1-6.5), SMM #1 lead average price initially stabilized and edged up before pulling back successively within the week. Spot premiums fluctuated in line with futures movements. Downstream users maintained just-in-time procurement throughout the week, with low willingness to purchase at high prices, leading to divergent spot order transactions. Regionally, Henan smelters posted discounts of 25 yuan/mt to premiums of 25 yuan/mt at the start of the week, while traders offered discounts of 180-150 yuan/mt against SHFE lead 2607. By Thursday and Friday, smelters suspended spot order quotations to fulfill long-term contracts, and traders narrowed their discounts to 130-110 yuan/mt, resulting in sluggish trading. In Hunan, ex-factory prices shifted from premiums of 0-30 yuan/mt to parity, then rebounded to premiums of 0-20 yuan/mt by the week's end. In Guangdong, suppliers initially offered discounts of 150 yuan/mt for self pick-up. Overall, as lead prices rose, smelters held back from selling while downstream users purchased sparingly. After the futures market dropped sharply, some rushed to offload cargoes at low prices while others held prices firm. Downstream users sought bargains at lower levels but remained cautious in procurement. Spot transactions were moderate early in the week, gradually weakened in the middle, and overall trading was on the soft side.