Secondary Lead Premiums Maintained a Fluctuating Trend, While Raw Material Costs Suppressed the Recovery of Smelter Losses [SMM Weekly Review of Secondary Refined Lead]

SMM, April 3:

This week, the mainstream tax-included ex-factory prices of secondary lead were at discounts of 50 yuan/mt to premiums of 50 yuan/mt against the SMM #1 lead average price, with local premiums at 75-100 yuan/mt; lead prices rose mid-week, boosting enterprises' willingness to make shipments, but downstream consumers remained cautious in pre-holiday procurement, and overall actual transactions in the spot market were relatively weak.

This week, the rise in lead prices helped repair smelter losses to some extent, but persistently high raw material costs for scrap batteries still put certain pressure on smelter profits. As of April 3, 2026, the theoretical comprehensive profit and loss for large-scale enterprises stood at -133 yuan/mt, and that for small and medium-sized enterprises was -315 yuan/mt (the by-product revenue in the model did not include tin and antimony). Next week, after the holiday, the pace of smelter production resumptions will accelerate, coupled with continued inflows of imported lead, leaving overall supply relatively ample. As the consumption off-season approaches, premiums for spot orders of secondary refined lead are expected to continue moving sideways within a range, with limited room for the premium range to expand.

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