Dear Users, Greetings! In recent years, China's secondary lead industry has accelerated its development toward greater scale and standardization. As the core raw material for secondary lead production, waste lead-acid batteries are integral to the entire process spanning collection, distribution, and smelting. The trading activity, channel stockpiling sentiment, and regional supply-demand divergences of waste lead-acid batteries have become key variables influencing the pricing pace of the lead industry chain. Currently, the industry only has scattered spot cargo quotations and regional transaction information, lacking unified observation indicators that can quantify market purchase willingness, channel wait-and-see sentiment, and the tug-of-war between upstream and downstream. Market practitioners mostly rely on offline inquiries, fragmented information, and subjective experience to judge market conditions, making it difficult to systematically anticipate price turning points and stockpiling pace. Information fragmentation also increases uncertainty in enterprises' procurement, sales, and inventory planning. To address the gap in industry sentiment observation, objectively reflect the true trading atmosphere of waste lead-acid batteries, and help all parties in the industry chain make rational decisions and mitigate operational risks, we officially launch the Waste Lead-Acid Battery Trading Sentiment Index, providing the industry with a standardized, trackable, and comparable sentiment reference benchmark. Starting from May 18, 2026, we will officially publish the East China Waste Lead-Acid Battery Trading Sentiment Index and the North China Waste Lead-Acid Battery Trading Sentiment Index. This index is a comprehensive indicator that quantifies the shipment sentiment of waste lead-acid battery collectors and the purchase willingness of smelters in east China (Anhui, Jiangsu, Zhejiang, Shandong, etc.) and north China (Hebei, Inner Mongolia, Shanxi, etc.). The scoring range is 1-5 (refined to decimals from 1.1 to 4.9), with higher scores indicating more active trading. Collector Scoring Rules 5: Panic selling, urgently offloading at low prices to cash out, no inquiries or buyers 4: Relatively strong sentiment, cautiously shipping in batches, waiting for price increases 3: Normal shipments following market trends, just-in-time procurement, no stockpiling or holding back 2: Relatively weak sentiment, sluggish shipments, scattered and slow transactions 1: No intention to ship, shipments suspended, market sluggish Smelter Scoring Rules 5: Urgently scrambling for goods, aggressively restocking, spot cargo undersupply 4: Concentrated inquiries, large-volume stockpiling, proactively increasing purchases 3: Normal just-in-time procurement, moderate restocking 2: Rare inquiries, only minimal just-in-time procurement 1: No purchase intention, purchases suspended, market sluggish The newly launched regional waste lead-acid battery trading sentiment index aims to provide secondary lead smelters, recycling traders, and upstream and downstream participants in the industry chain with an objective and referable benchmark for market sentiment and supply-demand expectations, helping all parties grasp the trading pace, reasonably arrange stockpiling and shipments, and further enhance operational decision-making efficiency and risk management capabilities. Thank you for your long-standing attention and support for SMM! We fully understand the importance of market sentiment and benchmark indicators for the operational planning of the lead industry chain. Going forward, we will continue to optimize the index compilation methodology to ensure data objectivity, continuity, and reference value. We also welcome valuable feedback from all sectors of the industry to jointly improve the waste lead raw material trading and pricing reference system and collectively promote the standardized and sound development of the secondary lead industry. Best regards! SMM Industry Research - Lead & Zinc Division Duan Pinxi 021-20707894 (duanpinxi@smm.cn) May 15, 2026

[Waste Lead-Acid Battery Market Dynamics] With lead prices in the doldrums, secondary lead smelters faced significant cost pressure on raw materials and recently lowered their purchase quotes for scrap batteries. Meanwhile, recyclers were also expected to follow suit by cutting their purchase quotes from stores. Some recyclers in east China said they would hold prices today and lower recycling prices by 30 yuan/mt starting tomorrow.

[Waste Lead-Acid Battery Market Dynamics] It was reported that one waste lead-acid battery collection and storage entity has been established in Zhangye City, Gansu Province, namely Zhangye Mingcheng Waste Battery Recycling Co., Ltd., which has obtained the Hazardous Waste Operating License issued by the Department of Ecology and Environment of Gansu Province. The approved operating method and category is the collection (HW31, 900-52) of waste lead-acid batteries, with an operating capacity of 2,000 mt/year. A total of 4 waste lead-acid battery collection sites have been set up across the city.

On April 9, 2026, the Japanese Cabinet officially approved the latest amendment to the Waste Disposal and Public Cleansing Act (commonly known as the "Waste Cleansing Act"). The core of the amendment is to upgrade metal recycling operations from a notification system to a permit system, and to impose a new obligation requiring confirmation from the Minister of the Environment for scrap metal exports.

[Waste Lead-Acid Battery Market Dynamics] It was reported that the website of the Yingkou Area of the China (Liaoning) Pilot Free Trade Zone recently published the "Public Notice of the Management Committee of the Yingkou Area of the China (Liaoning) Pilot Free Trade Zone on the Acceptance of the Environmental Impact Assessment Report for the Waste Lead-Acid Battery Collection (5,000 mt/year) Project of Fenghuan (Yingkou) Environmental Technology Co., Ltd." Upon completion, the project will have a waste lead-acid battery turnover capacity of 5,000 mt/a and a maximum storage capacity of 100 mt.

Three weeks ago until now, the shortage of remelted lead in domestic SEA countries has become significantly more severe. According to SMM’s internal survey, smelters in Malaysia, Vietnam, and India are unable to secure remelted lead to produce refined lead of 99.99% and 99.97%. This tight supply of remelted lead is pushing both domestic and international trading prices of refined lead higher across the mentioned-above regions.