Lead Prices in the Doldrums amid Limited Decline in Raw Materials, Loss-making Range of Smelters Widens [SMM Secondary Refined Lead Weekly Review]

SMM, July 31:

Views in the secondary refined lead market diverged further. Upstream suppliers held prices firm aggressively, while downstream enterprises called for price cuts and waited to purchase at lower levels. The price spread between secondary refined lead and primary lead narrowed, highlighting the purchasing advantage of primary lead. Price expectations between buyers and sellers differed widely, spot negotiations were at a stalemate, and overall market transactions remained sluggish. This week, mainstream transaction prices for secondary refined lead were at a discount of 75-0 yuan/mt against the SMM #1 lead average price. Meanwhile, scrap battery prices fell only slightly, widening the loss range for enterprises. As of July 31, 2026, the comprehensive theoretical profit/loss for large-scale secondary lead enterprises was -623 yuan/mt, while that for small and medium-sized secondary lead enterprises was -801 yuan/mt. If lead prices remain in the doldrums next week, the premium quotation range for spot orders of secondary refined lead against the SMM #1 lead average price will expand, and shipment volumes will continue to decline.