Cost Floor Combined with Stubborn Off-Season Weakness, Secondary Crude Lead Fluctuates Downward in Short Term [SMM Secondary Crude Lead Weekly Review]

SMM, June 5:

China's secondary crude lead price center moved lower this week, as the off-season for end-user batteries continued, restricting just-in-time procurement. The lead price is expected to be mainly in the doldrums in the near term: on the supply side, primary lead and secondary lead continue to increase output, putting short-term social inventory under inventory buildup pressure; however, tight supply of scrap batteries and firm raw material quotations have set a solid cost floor. Next week, closely monitor scrap battery prices and downstream purchasing trends. If raw material support weakens, the national secondary crude lead quotation may have further downside room.