According to the latest SMM data, the secondary lead industry faced worsening difficulties of high costs and losses, with the price spread between raw materials and finished products continuing to narrow, enterprise losses widening, and operating rates declining accordingly.

According to the latest data from industry sources, Household air conditioners: In April 2026, household air conditioner production and sales declined YoY, with the industry overall trending weak and both domestic sales and exports falling. In the Chinese market, four key factors constrained performance: a high base effect compounded by reduced subsidy intensity for trade-in programs diminishing policy benefits; a sluggish property market with insufficient new supporting demand; unfavorable weather delaying the peak sales season; and high costs coupled with high inventory levels further suppressing domestic sales performance.

Overall market trading activity was sluggish. At month-end, the market maintained a steady posture, watching for the outcome of the new round of aluminum fluoride tender prices. However, as the raw material side showed signs of easing, prices are expected to be slightly under pressure next month. Going forward, close attention should continue to be paid to dynamic changes on the raw material cost side, as well as marginal adjustments in the procurement pace of downstream aluminum enterprises.

[SMM Brass Billet News Flash] According to SMM, the current weak off-season pattern is unlikely to change, with no improvement in tight raw material supply, high costs, or sluggish demand for the time being. SMM expects the operating rate of the brass billet industry to continue declining by 0.19 percentage points MoM to 51.82%, with operating rates unlikely to recover in the short term.

This week (5.22-5.28), the brass billet industry remained in the doldrums, with an operating rate of 52.01%, down 0.13 percentage points WoW. Supply side, recycled brass raw materials were in tight supply and high in price, enterprises had insufficient raw material inventories, and production was constrained. Meanwhile, copper prices fluctuated at high levels, creating strong cost uncertainty, which suppressed enterprises' willingness to produce and stockpile, keeping overall industry operating rates low. Demand side, the off-season effect was evident, with end-use demand from home appliances, sanitary ware, hardware and other sectors remaining weak, and new orders were insufficient. Downstream wait-and-see sentiment was strong, with purchases mainly driven by just-in-time procurement. The pace of taking orders and cargo pick-up slowed down, finished product inventories across the industry stayed at a medium-to-high level, and market transactions were sluggish. Looking ahead to next week (5.29-6.4), the weak off-season pattern is unlikely to change, with tight raw material supply, high costs, and weak demand showing no signs of improvement for now. SMM expects the industry operating rate to decline 0.19 percentage points WoW to 51.82%, with operating rates unlikely to recover in the short term.

[Rising Interest Rate Cut Expectations Boost Market Sentiment; Aluminum Prices Continue LME Outperforms SHFE Sideways Pattern] On the domestic front, driven by improved export profits, aluminum semis exports recovered somewhat and are expected to remain at a relatively high level in the short term. However, the pace of inventory destocking in China remained slow, spot aluminum transactions were lackluster, and downstream purchasing remained cautious, limiting SHFE aluminum's upside room. Overall, aluminum prices are expected to continue the LME outperforms SHFE sideways pattern in the short term.