Secondary Refined Lead Smelters Who Sell under Long-Term Contracts to Struggle to Survive

SHANGHAI, Mar 14 (SMM) - SHFE lead prices have moved all the way down recently, so did secondary refined lead smelters’ battery scrap purchase prices. For example, the average price of SMM e-bike battery scrap slipped from 8,925 yuan/mt to 8,875 yuan/mt last week, and that of automotive lead-acid battery scrap also lost 50 yuan/mt, translating into lower costs for secondary lead smelters. Secondary lead smelters reported profits of 260 yuan/mt based on SMM prices of lead-acid battery scrap and secondary refined lead on the same day, but their profits were merely around 200 yuan/mt when calculated based on scrap prices two weeks ago. Secondary refined lead under long-term contracts was sold at discounts of 50-300 yuan/mt against the average price of SMM #1 lead ingots, which averaged 15,105 yuan/mt from February 10 to March 10. Should SHFE lead prices hover at lows in March, most secondary lead smelters who make shipments under long-term contracts will report meagre profits.