SMM News on June 6: In the Shanghai market, Chihong and Honglu lead were quoted at 16,650-16,700 yuan/mt, with quotations at discounts of 20-0 yuan/mt against the SHFE lead 2507 contract. SHFE lead maintained a consolidation trend, and suppliers quoted prices in line with market conditions, mostly at small discounts. Among them, the discounts for cargoes self-picked up from production sites of primary lead smelters in mainstream regions narrowed slightly, with quotations ranging from discounts of 40 yuan/mt to premiums of 100 yuan/mt against the SMM 1# lead average price ex-factory, mainly due to the narrowing of discounts in South China. Production cuts in the secondary lead sector increased due to factors such as environmental protection and losses, with smelters shipping less cargo, while some traders continued to ship as usual. Downstream enterprises maintained just-in-time procurement, with some accepting cargoes at large discounts, and the spot market saw a regional improvement in transactions.
Other markets: Today, the SMM 1# lead price remained unchanged from the previous trading day. In Henan, suppliers quoted prices at discounts of 200-160 yuan/mt against the SHFE lead 2507 contract ex-factory. In Hunan, smelters quoted prices at discounts of 40-30 yuan/mt against the SMM 1# lead average price ex-factory, with individual smelters narrowing their discounts to 20-0 yuan/mt and adopting a wait-and-see attitude after selling out their inventory. Traders quoted prices at discounts of 50-30 yuan/mt against the SMM 1# lead average price ex-factory. In Guangdong, suppliers quoted prices on par with the SMM 1# lead average price ex-factory, and transactions were moderate. During the day, SHFE lead fluctuated within a range, with discounts narrowing in some regions after the primary lead spot inventory was sold out. Prices of secondary refined lead remained firm, and downstream enterprises' just-in-time demand still leaned towards the primary lead market, with spot transactions being moderate in some regions.
