Nov 3 Scrap Battery Market Transaction Summary [SMM Daily Review]

SMM, November 3:

SHFE lead fell below the 16,000 yuan mark and the lead price center moved lower. Driven by this, mainstream quotations for scrap batteries in China were lowered today, with most smelters cutting their purchase prices by 50-100 yuan/mt, and the market center shifted notably downward. As futures prices weakened rapidly, the earlier expectations of price increases were shattered. Sentiment among scrap battery suppliers turned unstable, and some suppliers who had previously held back from selling in anticipation of higher prices began selling in panic, with their willingness to hold back from selling cooling significantly. On the smelter side, as supplier shipments increased, raw material inventories have been partially replenished, easing the pressure of material shortages, and smelters are now mostly purchasing at stable prices based on demand. Overall, SHFE lead has entered deep oversold territory, and the momentum for further technical declines is weakening. Combined with recyclers holding relatively low scrap battery inventories and facing difficulties in purchasing at low prices, it is expected that after this round of price cuts, prices are likely to stabilize and consolidate in the short term, with limited room for deep declines. However, futures prices remain below the middle band, and the weak pattern has not fundamentally reversed. Close attention should be paid to whether SHFE lead can stabilize and whether scrap battery raw material arrivals at smelters continue to increase in volume.