[SMM Lead Morning Meeting Minutes: Overseas Inventory Buildup Weighing Down, Lead Prices Weakening in Tandem Inside and Outside China] Bearish factors in markets outside China have continued to ferment, geopolitical risks remain, compounded by a sharp increase in LME lead inventories to a near 14-year high, exerting significant pressure on lead prices...

SMM July 14 News: Lead prices fell sharply today, directly dragging down the scrap battery recycling market. Some smelters simultaneously lowered their purchase prices for batteries, and recyclers suffered losses on material procurement, daring not to purchase in large quantities. The amount of circulating scrap batteries was already scarce, and retail holders and repair shops held back from selling, waiting and watching, unwilling to sell at low prices. Supply and demand were locked in a stalemate, trading activity was sluggish, and there were no clear signs of recovery in the short term. Most traders held a wait-and-see sentiment, waiting for prices to stabilize.

SMM, July 10: This week, the supply of secondary crude lead continued to tighten. Smelters in multiple regions voluntarily cut production, weighed down by raw material shortages and losses on production. Insufficient supply of scrap batteries led most suppliers to hold back from selling, leaving only a small volume of circulating cargo in the market. The battery downstream was in the traditional consumption off-season, with manufacturers only making just-in-time procurement. Price negotiations between buyers and sellers remained difficult, and spot cargo transactions were sluggish. Next week, the raw material shortage is unlikely to ease, and with extreme weather forcing production halts at some smelters, the supply of secondary crude lead will further decline, supporting prices that are more likely to rise than fall.

SMM, July 9: Scrap battery offers were low, and recyclers’ willingness to sell was poor. Lead prices performed poorly; secondary lead smelters’ purchase offers for scrap batteries were too low, and waste lead-acid battery recyclers showed low willingness to sell due to thin profits. Additionally, extreme weather had been frequent recently, and highway closures also affected transportation; most smelters reported average arrivals.

SMM, July 7: Today, futures maintained a weak downward trend, and spot prices edged down by 25 yuan/mt; smelters' procurement quotes for scrap batteries remained stable, and essential restocking demand and routine production provided short-term price support. Currently, smelters' procurement costs for scrap batteries fluctuated at highs, and along with the continued weakening of spot finished products, smelting profit margins continued to shrink, and the scope of production cuts and shutdowns in the industry gradually expanded. On the other hand, affected by the consecutive pullback in procurement prices, shops held back from selling, and arrivals of scrap batteries decreased markedly.

Recently, China's lead prices have continued to weaken. Secondary smelters have been broadly trapped in a dual predicament of production losses and a shortage of scrap battery raw materials. SMM's statistics on production cuts and resumption plans at secondary lead enterprises across the country in June–July clearly reflect the current pressure on the industry.