SMM December 31:
This week, the domestic waste lead-acid battery market continued to experience a tight supply situation. Recycling volumes in major regions such as East China, North China, and Central China were limited, leading to a continued contraction in raw material supply. As a result, some secondary lead smelters implemented production cuts of 20%-40%. During the week, the non-ferrous metals sector generally pulled back, and lead prices came under pressure, dropping slightly. In North China, recyclers' sentiment of holding back goods loosened, and their willingness to sell rebounded, but the actual supply increase was relatively small. SMM data showed that the weekly raw material inventory of secondary lead smelters decreased by 8,800 mt WoW. As lead prices weakened, some secondary lead enterprises lowered their purchase offers for scrap batteries. The current mainstream delivery-to-factory price, tax included, for scrap electric vehicle batteries is between 9,840-9,950 yuan/mt. After the New Year's Day holiday, a recovery in downstream production is expected to boost demand for lead ingots, potentially improving market liquidity. However, attention should be paid to the risk of scrap battery offer pullbacks that may be triggered by lead price fluctuations.
This week, lead prices retreated after a rapid rise, and suppliers' willingness to sell varied significantly. Some smelters sold off due to fear of price declines, while others held back goods awaiting price increases. As of December 31, 2025, the ex-factory offers for secondary crude lead, tax excluded, ranged from 15,750 to 15,900 yuan/mt. The LME outperformed the SHFE, dampening enthusiasm for the inflow of imported crude lead. Additionally, as most countries celebrated the "January 1 New Year" holiday, market trading activity declined. SMM expects little change in domestic secondary crude lead supply next week compared to this week.
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