SMM December 26:
This week, refined lead suppliers increased their sales activity as lead prices rose. The mainstream spot order ex-factory prices for secondary refined lead, including tax, were at a discount of 75-0 yuan/mt to the SMM #1 lead average price. A small volume of low-priced supply in central China was offered at a discount of 125 yuan/mt ex-factory. Downstream battery producers cautiously watched the market, mostly purchasing as needed, with some suspending purchases due to high inventory. As environmental protection-related controls continued to strengthen in east China, secondary lead production was expected to decline next week. If lead prices continue to hover at highs next week, downstream battery producers' purchasing willingness is not expected to strengthen, and the discount for secondary refined lead quotations is likely to remain stable.
This week, the center of lead prices moved significantly higher, while procurement offers for waste lead-acid batteries followed the increase to a limited extent, allowing secondary lead smelters' profits to recover and briefly turn positive. SMM data showed that as of December 26, 2025, the theoretical comprehensive profit/loss for large-scale secondary lead enterprises was 287 yuan/mt, and for small and medium-scale secondary lead enterprises it was 77 yuan/mt (by-product revenue in the model excludes tin and antimony). As waste lead-acid battery recyclers are currently holding back supply in anticipation of higher prices, secondary lead smelters' cost pressure remains high. Meanwhile, although lead prices fluctuate at highs, weak transactions increase the likelihood of a pullback after a rapid rise. SMM expects significant obstacles to expanding secondary lead smelters' profit margins.
》Order to View SMM Metal Spot Historical Prices
