SMM Shanghai and Other #1 Lead Markets: Downstream Purchases as Needed Near the Weekend, Spot Lead Trades at a Slight Premium [SMM Midday Commentary]

        SMM, October 16: In Shanghai, Chihong lead was reported at 16,400-16,440 yuan/mt, quoted at premiums of 200 yuan/mt against the SHFE 2611 contract. SHFE lead continued to consolidate, with few quotations from suppliers in Jiangsu, Zhejiang, and Shanghai. For primary lead smelters' Ex-works cargoes, north-south supply differences persisted, and mainstream production area quotations were at premiums of 50-100 yuan/mt against the SMM #1 lead average price. In secondary lead, regional supply was tight, and mainstream production area secondary refined lead quotations remained at premiums of 50-100 yuan/mt against the SMM #1 lead average price.

Today, the SMM #1 lead price fell by 25 yuan/mt from the previous trading day. In Henan, spot supply was tight, with smelters mostly queuing shipments, and a small number of spot orders were quoted at premiums of 30-60 yuan/mt against the SHFE 2611 contract, while some suppliers had no cargo and did not quote. In Hunan, smelters held prices firm for shipments, with spot orders quoted at premiums of 50-75 yuan/mt against the SMM #1 lead average price, and a few traders quoted at premiums of 0-30 yuan/mt against the SMM #1 lead average price. In Jiangxi and Anhui, smelter quotations were at premiums of 100-150 yuan/mt against SMM #1 lead, with some being pre-sales. Lead prices consolidated on a subdued note, downstream enterprises purchased cautiously, with some purchasing as needed ahead of the weekend, while others mainly took delivery under long-term contracts. Meanwhile, circulating spot market cargoes were limited, and the overall market traded at small premiums.

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