[Lead-Acid Battery Enterprise Updates] Recently, Leoch International announced that, after considering various factors such as current market and regulatory conditions, it decided not to proceed at this stage with the proposed spin-off of Leoch Energy Inc. and its listing on a US stock exchange. Leoch Energy Inc. will adjust its financing strategy and seek new opportunities.

Futures: Overnight, LME lead opened at $1,937.5/mt. During the Asian session, it moved sideways around the intraday moving average. After entering the European session, it rose to a high of $1,945.5/mt, then fluctuated rangebound at high levels before pulling back to a low of $1,932/mt. Before the close, it edged up slightly to recover part of the losses, and finally closed at $1,935.5/mt, down $3/mt, or 0.15%. Overnight, the most-traded SHFE lead contract opened at 16,605 yuan/mt. After dipping to 16,550 yuan/mt in early trading, it rebounded and consolidated near the intraday moving average, finally closing at 16,595 yuan/mt, down 35 yuan/mt from the previous day, or 0.21%. On the macro front: The fourth session of the 14th National People's Congress closed in Beijing. The meeting voted to adopt the resolution on the government work report and reviewed and approved the outline of the 15th Five-Year Plan, charting the course for economic and social development over the next five years. Data released by the US Department of Labor on Thursday showed that although the February nonfarm payrolls report released last week came in weaker than expected, the mild pullback in initial jobless claims indicated that the scale of corporate layoffs remained limited, with employers still more inclined to retain workers. This eased market concerns about a sharp deterioration in the labour market. After the data release, major US stock indexes maintained their declines, while energy stocks were among the few sectors that rose due to a sharp increase in oil prices. Spot Fundamentals: In the Shanghai market, Chihong lead was quoted at discounts of 50-0 yuan/mt against the SHFE lead 2604 contract. The center of SHFE lead moved further lower, and suppliers shipped in line with market conditions. In addition, with delivery approaching, some suppliers became less willing to sell, and quotations appeared somewhat firmer, with significantly fewer transactions at large discounts. Among them, ex-factory quotations in major primary lead producing areas were at discounts of 25 yuan/mt to premiums of 25 yuan/mt against the SMM #1 lead average price. Meanwhile, circulation of spot cargo in the secondary lead market was limited, and secondary refined lead was quoted ex-factory around parity against the SMM #1 lead average price. Downstream enterprises mainly purchased under long-term contracts, with limited spot order replenishment, while some purchased as needed. Trading in the spot market was subdued on both sides. Inventory: As of March 12, LME lead inventory fell by 375 mt to 284,500 mt; as of March 12, SMM social inventory of lead ingots across five regions continued its accumulation trend. Lead Price Forecast for Today: Approaching the weekend, operating rates at primary lead smelters in Hunan gradually resumed, though they had not yet returned to full production, and primary lead quotations in Hunan and Guangdong remained relatively firm. As the delivery date of the SHFE lead 2603 contract approached, suppliers were shifting inventory to delivery warehouses one after another, and social inventory of lead ingots continued to become more visible. With more imported lead arriving at ports and China refined lead supply gradually recovering, spot cargo in the spot market was relatively ample. Downstream enterprises had more procurement options, actively negotiated prices, and bought the dip. In the short term, the accumulation trend in social inventory of lead ingots is expected to be difficult to reverse, and lead prices are expected to remain in the doldrums.

[SMMS Morning Meeting Summary: Sudden Geopolitical Risks in the Middle East, Zinc Prices Expected to Fluctuate at Highs] Last Friday, LME zinc recorded three consecutive days of decline, with the daily candlestick center shifting downward. The core PPI in the US reached its fastest growth rate in a year, complicating the US Fed's monetary policy. Additionally, over the weekend, a sudden geopolitical conflict erupted in the Middle East, leading to the closure of the Strait of Hormuz...

[Price Review] During the Chinese New Year holiday, overseas precious metals were affected by multiple factors including US macro policies and Middle East geopolitical conflicts. Silver prices showed a V-shaped reversal trend, falling first and then rising. As of the closing on February 23, spot silver in London closed at $88.17 per ounce, up approximately 13.8% compared to the pre-holiday closing price of $77.46 per ounce on February 13. A pre-holiday decline in US stocks, combined with weakened liquidity, dragged down overseas precious metal prices, which continued to fall in the early part of the Chinese New Year holiday week. Subsequently, the US released its Q4 GDP growth for last year, which fell short of expectations, leading precious metals to stop falling and rebound. Last Friday (February 20), the US Supreme Court ruled to repeal most of the tariffs imposed by the Trump administration last year, and Trump immediately announced an additional 10% tariff on all global imports to the US over the next 150 days. This news reignited market concerns about trade conflicts and economic downturn. Additionally, stalled US-Iran negotiations, which could lead to a worsening situation in the Middle East, stimulated safe-haven demand. Precious metals surged significantly during the session, recovering previous losses, with silver leading the gains sharply. After the Chinese New Year holiday this week, uncertainties around tariff policies and geopolitical impacts continued to ferment. Domestic silver prices opened higher and extended their strong upward trend. After SHFE deliveries concluded on Thursday, spot cargo flowed out, and previously imported crude silver materials entered the market after processing, temporarily alleviating the tight supply of national standard silver ingots. Approaching the weekend, silver prices showed some weakness in continuing their rally. Regarding the gold/silver ratio, as silver led the precious metals gains during the holiday against a backdrop of low inventory levels, the gold/silver ratio dropped back slightly below 60 times. As of February 25, the LBMA gold/silver ratio pulled back to about 57 times. [Important Data] Bullish: US EIA crude oil inventories for the week ending February 13 were -9.014 million barrels, lower than the previous value and expectations. The final University of Michigan Consumer Sentiment Index for February was 56.6, lower than the previous value and expectations. Bearish: US initial jobless claims for the week ending February 14 were 206,000, lower than the previous value and expectations. The US core PCE price index annual rate for December was 3%, higher than the previous value and expectations. US EIA crude oil inventories for the week ending February 20 were 1,598.9, higher than the previous value and expectations. Data and macro news releases to focus on next week include: This Friday, the US will release the January core PCE price index, the inflation indicator most closely watched by the US Fed, which will directly impact monetary policy expectations. On March 6 (Friday) at 21:30, the US will release the February seasonally adjusted non-farm payrolls data and unemployment rate, key indicators for assessing the US labour market conditions and the US Fed's policy direction. Next week, Fed Chairman Powell and several governors and voting members will deliver speeches, requiring attention to their latest statements on inflation, the job market, and the impact of tariff policies. U.S.-Iran situation: The third round of indirect talks between the U.S. and Iran was held on February 26, with both sides reaching consensus on the guiding principles for negotiations, but core disagreements remain. The U.S. military has deployed two aircraft carriers to the Middle East, and the period from March to July 2026 is a high-risk window, requiring vigilance against risks of negotiation breakdown or escalation of military friction. [Price Forecast] Silver prices have ended the wild swings in the short term. As London silver prices break through the 50-day daily average and stabilize above key support levels, bulls are expected to return to the market. Overall, overseas silver prices may move sideways next week, but risks of high fluctuations due to further escalation of U.S.-Iran negotiation outcomes and Trump's tariff policies still require caution. On the domestic spot price front, despite robust downstream demand, previously imported crude silver and large ingots have been processed and refined and are gradually entering the market. Some suppliers have slightly lowered their premium quotes, and further narrowing of domestic silver ingot premium is expected.

During the Chinese New Year holiday, overseas precious metals were affected by multiple factors such as US macro policies and Middle East geopolitical conflicts, with silver prices showing a V-shaped reversal trend, falling first and then rising. As of the close on February 23, London spot silver settled at $88.17 per ounce, up approximately 13.8% from the pre-holiday closing price of $77.46 per ounce on February 13. Due to the drag from pre-holiday US stock declines and weakening liquidity, overseas precious metals continued their decline at the beginning of last week, with silver and platinum once falling below the 60-day moving average and gold losing the 20-day moving average. Subsequently, as the US announced that the Q4 GDP growth rate fell short of expectations, precious metals stopped falling and rebounded. After the US Supreme Court ruled to revoke most tariffs imposed by the Trump administration last year and Trump immediately announced an additional 10% tariff on globally imported goods to the US within the next 150 days, market concerns over trade conflicts and economic downturn were reignited. Coupled with the deadlock in US-Iran negotiations potentially worsening the Middle East situation, which stimulated safe-haven demand, precious metals surged significantly during the session and recovered previous losses, with silver leading the gains. During the 2026 Chinese New Year holiday, refined silver supply from copper, lead, and zinc smelters mainly maintained stable production, while large-scale downstream enterprises such as silver nitrate and alloy manufacturers generally suspended operations for the holiday. Except for a few small and medium-sized silver-based material, jewelry, and some industrial users processing urgent orders normally, downstream consumption temporarily stalled due to holiday factors and the high silver price and premium market conditions. Although multiple smelters mentioned accumulated in-factory inventory after the holiday, compared to previous years, the destocking speed for the accumulated inventory after the 2026 holiday was faster. Some manufacturers transferred in-factory inventory to social warehouses on the first day after the holiday and prepared for delivery or sold directly at market premiums. Smelter in-factory inventory levels are expected to gradually decrease to safe levels. Looking ahead this week, although import tariffs on investment-grade gold and silver are exempted, the policy's impact on US dollar assets and its boost to precious metal allocation demand will both benefit gold and silver prices. The market will further price in the impact of Trump's tariffs. In the spot market, physical investment demand for precious metals may again see stockpiling and rush to buy amid continuous price rises. Some downstream enterprises expect to purchase physical goods from the exchange after the delivery of the SHFE February contract ends, thus cautiously watching the high premium quotes for circulating supplies after the holiday. Additionally, it is worth noting that the significant volatility in silver prices in early 2026 and the hedging liquidity pressure brought by the exchange's raised margins have prompted intermediate silver-containing material processing manufacturers to weigh between maintaining customer relationships with orders at breakeven or even small losses and halting production to stop losses. Although downstream enterprises resumed normal operations after the holiday, most industrial enterprises basically did not take new orders during the holiday. Post-holiday orders for silver nitrate and electronic/electrical intermediate processing products are expected to be average. Spot transactions are mainly driven by investment demand, with jewelry and investment silver bar processing recovering quickly. Industrial consumption end-users currently have low acceptance of the significantly increased prices and post-holiday spot premiums, thus placing orders relatively cautiously. After the holiday, the precious metals market is partially hot but overall sluggish. Besides macro disturbances and geopolitical changes, subsequent attention should still be paid to premium changes after the delivery of the SHFE front-month contract and whether low inventory in overseas COMEX will again cause price anomalies.

[SMM Aluminum Morning Meeting Minutes: AI Concerns Triggered a Broad Decline in Risk Assets, Aluminum Prices Under Pressure and in the Doldrums] Overall, the bullish sentiment in the nonferrous metals market cooled down, coupled with high inventory pressure on the fundamentals, aluminum prices were in the doldrums this week. During the Chinese New Year holiday, the domestic market was closed, while the LME market continued trading. Be cautious of fluctuations in the macro market and the LME market during the holiday, which may cause volatility in aluminum prices after the holiday.