SMM May 28 News: During the session, the most-traded SHFE lead 2607 contract opened at 16,594 yuan/mt, fluctuated downward throughout the day with the price center continuously shifting lower, dipping to a low of 16,490 yuan/mt in the later part of the session, before moving sideways within the 16,500-16,530 yuan/mt range, and finally closed at 16,505 yuan/mt, posting a bearish candlestick with no lower shadow, down 165 yuan/mt or 0.99%. This week, some smelters in North China and South China ended shutdowns and resumed production, and the operating rate of secondary lead smelters rebounded. Affected by weak downstream purchasing enthusiasm, finished product inventories at secondary lead smelters saw a slight inventory buildup this week, exerting some pressure on lead prices. In June, the pace of production resumptions at secondary lead smelters will accelerate, and it is necessary to continuously track the progress of production resumptions and the impact of production release on lead prices. Data source statement: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

SMM May 28: Overnight, LME lead opened at $2,016/mt, rising first then falling during the Asian session with a high of $2,021/mt. It then fluctuated downward after entering the European session, dipping to $2,000/mt near the close, and finally settled at $2,001/mt, down 0.72%. Overnight, the most-traded SHFE lead 2607 contract opened lower with a gap at 16,690 yuan/mt, briefly touching a high of 16,710 yuan/mt at the start of the session. After bulls reduced positions, it fluctuated downward to a low of 16,580 yuan/mt, and finally settled at 16,615 yuan/mt, down 0.69%. End-use demand for lead-acid batteries weakened, with retail stores seeing new battery inventory buildup and low scrap battery recycling volumes. Sales promotions were frequent in the market, and manufacturers' willingness to purchase lead ingots remained subdued. Additionally, multiple secondary lead enterprises plan to resume production after maintenance ends in early to mid-June, concentrating short-term bearish factors on lead prices. Subsequent focus should be on scrap battery supply and its impact on enterprises' production resumption progress. Data source disclaimer: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

Futures: Overnight, LME lead opened at $2,016/mt, rising first then falling during the Asian session with a high of $2,021/mt. It then fluctuated downward during the European session, dipping to $2,000/mt near the close, and finally settled at $2,001/mt, down 0.72%. Overnight, the most-traded SHFE lead 2607 contract opened lower with a gap at 16,690 yuan/mt, briefly touching a high of 16,710 yuan/mt early in the session. After bulls reduced positions, it fluctuated downward to a low of 16,580 yuan/mt, and finally settled at 16,615 yuan/mt, down 0.69%. On the macro front: Samsung's union approved a wage agreement, averting strike risks. Reports indicated that TSMC will raise 3nm prices by 15% in H2, with a potential further 10% increase next year. The Reserve Bank of New Zealand kept interest rates unchanged for the third consecutive time, signaling that earlier and larger rate hikes may be needed. EU sources: EU member state governments have approved legislation to implement tariff reductions on US goods imports. China's State Administration for Market Regulation deployed local market regulators to carry out a special campaign on credit-empowered rectification of "involution" competition, May-December. ChangXin Technology's STAR Market IPO was approved by the listing committee. HKEX: launched a full-market trading fee waiver for gold futures. NBS: From January to April, total profits of China's above-scale industrial enterprises reached 2,435.84 billion yuan, up 18.2% YoY. From January to April, rapid development of semiconductor-related industries drove profit growth in electronic specialty materials manufacturing, optical fiber manufacturing, and optoelectronic device manufacturing by 601.7%, 347.6%, and 51.0%, respectively. : Circulating cargoes in the Jiangsu, Zhejiang, Shanghai market were limited, with few quotations from suppliers. SHFE lead continued to hold up well yesterday, and suppliers showed moderate willingness to ship, though mainly cargoes self-picked up from production site of primary lead smelters, with relatively firm quotations. Secondary lead smelters shipped along with the market, with some quotations turning to discounts. Secondary refined lead was quoted at premiums of -25~0 yuan/mt against SMM #1 lead, while a few regions quoted at premiums of +50 yuan/mt. As lead prices rebounded, downstream enterprises were cautious about purchasing at high prices, with some enterprises negotiating more. Only cargoes at large discounts (against the most-traded SHFE lead contract) saw transactions. On the inventory front: On May 27, LME lead inventory decreased by 1,350 mt to 284,350 mt. As of May 25, total SMM lead ingot social inventory across five locations decreased by 3,200 mt compared with May 18. Lead price forecast for today: End-use demand for lead-acid batteries weakened, with new battery inventory accumulating at stores and scrap battery recycling volume remaining low. Frequent market sales promotions have dampened manufacturers' willingness to purchase lead ingots. Coupled with several secondary lead enterprises planning to resume production after maintenance in early-to-mid June, factors pressuring lead prices have converged in the short term. Going forward, focus should be placed on scrap battery supply and its impact on the pace of enterprise production resumptions. Data source disclaimer: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and SMM's internal database models. The data are for reference only and do not constitute decision-making advice.

SMM May 27 News: The most-traded SHFE lead 2607 contract opened at 16,670 yuan/mt intraday. Prices fluctuated higher in early trading, reaching a high of 16,745 yuan/mt, then moved sideways in the 16,710-16,740 yuan/mt range, touching the 16,740 yuan/mt resistance level multiple times without an effective breakout. In the later session, prices turned to fluctuate downward, hitting a low of 16,640 yuan/mt, before rebounding slightly near the close, ultimately settling at 16,670 yuan/mt, down 45 yuan/mt or 0.27%. The lead-acid battery industry is currently in its traditional off-season, with weak downstream demand. Combined with the rebound in lead prices, battery manufacturers remained cautious in procurement. Supply side, domestic primary and secondary lead production rebounded slightly; outside China, supply and demand diverged, with tight supply of high-grade lead ingots in Southeast Asia, while Australian smelters gradually ramped up production. With bullish and bearish factors intertwined, SHFE lead prices are expected to fluctuate at highs in the short term. Data source statement: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.

SMM May 27: Dealers in Shandong reported that replacement demand in the e-bike lead-acid battery market remained sluggish, with poor battery sales. Current battery inventories exceeded one month. The battery wholesale market had a strong clearance atmosphere, with the main model 48V20Ah quoted at 400 yuan/set. Dealers in Shanxi reported that the off-season trend in the e-bike market intensified. Multiple brands in the battery wholesale market successively implemented sales promotions on batteries, with the main model 48V12Ah dropping to 275 yuan/set. Manufacturers in Zhejiang reported that consumption in the e-bike lead-acid battery market was weak. Dealers were cautious in purchasing, and finished product inventories stayed high. The current factory operating rate was maintained at around 80%. In addition, lead prices pulled back today, and they purchased lead ingots as needed.

SMM May 27: Overnight, LME lead opened at $2,011.5/mt, briefly touched a low of $2,010/mt during the Asian session before fluctuating upward; entering the European session, it probed a high of $2,022/mt before pulling back slightly, ultimately closing at $2,015.5/mt, up 0.12%. Overnight, the most-traded SHFE lead 2607 contract opened at 16,740 yuan/mt, fluctuating around the intraday moving average, with an intraday low of 16,710 yuan/mt and a high of 16,775 yuan/mt, ultimately closing at 16,745 yuan/mt, down 0.06%. Consumption side, the lead-acid battery market remained in off-season mode, with downstream enterprises' rigid demand still limited. Combined with the fluctuating rebound in lead prices, downstream enterprises became more cautious in procurement. Supply side, production at both primary lead and secondary lead enterprises was stable with a slight increase. Secondary lead losses began to recover, market circulating supplies increased, and spot lead trading gradually shifted to a discount (against SMM #1 lead). Meanwhile, tight supply of high-grade lead ingots in the Southeast Asian market has yet to ease, while Australian lead-zinc smelters ramped up production. With bullish and bearish factors coexisting, lead prices are expected to continue fluctuating at highs. Data source disclaimer: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.