SMM Shanghai and Other 1# Lead Markets: Supply Tightens, Driving Lead Prices Up While Spot Trading Activity Declines [SMM Midday Review]

        SMM, December 26: In the Shanghai market, Honglu lead was quoted at 17,380-17,410 yuan/mt, with a premium of 0-10 yuan/mt against the SHFE lead 2501 contract. In the Jiangsu-Zhejiang region, JCC lead was also quoted at 17,380-17,410 yuan/mt, with a premium of 0-10 yuan/mt against the SHFE lead 2501 contract. Frequent environmental protection incidents in the domestic market have had a greater impact on supply than on demand. After the SHFE lead opened in the morning, it fluctuated upward. At year-end, suppliers held limited inventories, and a few firm quotes were observed. During this period, some smelters in certain regions raised the premiums for cargoes self-picked up from production sites. Downstream enterprises adopted a wait-and-see approach with limited purchases, and some just-in-time procurement leaned toward the relatively lower-priced secondary lead, leading to a decline in market trading activity.
        Other markets: Today, the SMM #1 lead price increased by 50 yuan/mt compared to the previous trading day. As year-end approaches, downstream raw material restocking enthusiasm remained low, and the market continued to see sluggish transactions. In Henan, a small volume of spot cargoes traded at a premium of 50-100 yuan/mt against the SMM #1 lead price for just-in-time procurement. In Hunan, smelters had extremely limited circulating cargoes, and after depleting their inventories, they suspended quotations. Some manufacturers and traders paused shipments or pre-sold futures for after the New Year holiday due to year-end inventory checks and settlements. Downstream enterprises made just-in-time procurement locally, and overall market transactions remained subdued.