Lead Prices Pulled Back After Fluctuating at Highs, Secondary Lead Discounts Moved Sideways [SMM Secondary Refined Lead Weekly Review]

SMM April 24 News:

Lead prices fluctuated at highs before pulling back this week, and secondary refined lead premiums overall maintained a discount pattern. In the first half of the week, lead prices fluctuated, and suppliers saw improved shipments but downstream battery enterprises were sluggish in purchasing with poor transactions. Some suppliers widened discounts, with mainstream spot order tax-inclusive discounts at 100-0 yuan/mt. In the second half of the week, lead prices pulled back, suppliers' willingness to sell was subdued and supply was tight, with mainstream quotations quoted at premiums of -50-0 yuan/mt against SMM #1 lead ingots.

This week, affected by falling lead prices and smelters lowering scrap battery purchase prices, secondary lead smelter costs decreased and losses narrowed somewhat. As of April 24, large-scale enterprises posted profits/losses of -148 yuan/mt, while small and medium-sized enterprises posted -348 yuan/mt. Next week, some smelters will halt production for maintenance, and battery plants' procurement will weaken ahead of the holiday. The weak supply-demand pattern on both sides is expected to continue, and the industry's loss-making pattern is unlikely to be repaired in the short term. Secondary refined lead discounts are expected to remain in the range of 50-0 yuan/mt.