SMM Shanghai and Other 1# Lead Markets: Lead Prices Weakly Consolidate, Downstream Enterprises Cautiously Purchase as Needed [SMM Midday Review]

SMM reported on January 7: In the Shanghai market, Chihong lead was quoted at 16,790-16,835 yuan/mt, with a premium of 50-80 yuan/mt against the SHFE lead 2502 contract. In Jiangsu and Zhejiang regions, JCC and Jinde lead were quoted at 16,740-16,800 yuan/mt, with a premium of 0-50 yuan/mt against the SHFE lead 2502 contract. SHFE lead fluctuated downward, and suppliers quoted prices in line with the market. Some premiums were reduced, while regional supply differences for cargoes self-picked up from production sites by smelters persisted. Spot price differences between northern and southern regions were significant. Downstream enterprises purchased as needed, and some cargoes with reduced premiums saw improved transactions.

Other markets: Today, the SMM 1# lead average price remained unchanged from the previous trading day. In Henan, suppliers quoted a premium of 0-50 yuan/mt against the SMM 1# lead average price or a premium of 20-50 yuan/mt against the SHFE lead 2402 contract. The market supply was relatively ample, and suppliers lowered their premium quotes. In Hunan, smelter supply was limited, with some continuing to quote ex-factory prices at a premium of 300 yuan/mt. In Jiangxi, Guangdong, and other regions, smelters stood firm on quotes, maintaining high premium prices. Downstream buyers purchased nearby as needed, and spot market transactions improved regionally.