[Cost side firm with falling by-product returns; few secondary lead spot orders quoted this week - SMM Secondary Refined Lead Weekly Review]

SMM, September 11:

Lead prices consolidated at high levels within a narrow range, and the theoretical smelting loss for secondary lead was only marginally repaired. Enterprises reported that overall smelting profits actually weakened this week. The key drag came from higher coke prices (rising energy costs), compounded by a pullback in by-product sulphuric acid revenue, squeezing corporate profit margins. Spot order supply in the market was relatively thin this week, with mainstream transactions at a discount of 50-75 yuan/mt against the SMM #1 lead average price.

Looking ahead to next week, spot order supply of secondary refined lead is expected to remain limited, with mainstream discounts likely to hold at current levels or widen slightly. Scrap battery prices remain firm, keeping overall smelting profits under sustained pressure, with little expectation of near-term improvement.