SMM News, March 27: The most-traded SHFE lead 2605 contract opened at 16,390 yuan/mt during the day. Boosted by broad-based gains across nonferrous metals, the price continued to fluctuate upward, hitting a high of 16,570 yuan/mt before pulling back somewhat. It then consolidated narrowly in the 16,520-16,555 yuan/mt range and finally closed at 16,555 yuan/mt, posting a small bullish candlestick, up 95 yuan/mt, or 0.58%. On the supply side, deliverable primary lead inventory for primary lead fell MoM, and reduced circulating cargo supported premiums in quotations; secondary lead smelters mostly held strong wait-and-see sentiment, with few spot quotes, while limited cargo was quoted at slight premiums. On the demand side, downstream purchasing sentiment was mixed, with both wait-and-see sentiment and purchasing as needed, and transactions were average. As the resumption of production at secondary lead smelters accelerates, expectations for increased spot secondary lead supply are strong, but downstream purchases for rigid demand remain limited, and lead prices are expected to remain in the doldrums. Data source disclaimer: Except for publicly available information, all other data is processed and derived by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.

SMM, June 17, 2025 This week, the SHFE lead 2506 contract was delivered. The social inventory of lead ingots continued to increase, with the total social inventory of lead ingots in the five regions tracked by SMM reaching 56,400 mt. On the day, the most-traded SHFE lead 2507 contract opened at 16,965 yuan/mt. As bulls reduced their positions, the SHFE lead price plunged at the beginning of the session, oscillating around the 16,900 yuan/mt level during the day. It fell to a low of 16,855 yuan/mt in the late session and closed at 16,860 yuan/mt, down 0.71%, with an open interest of 41,457 lots. In early June, secondary lead smelters significantly reduced or halted production. The rigid demand from downstream enterprises shifted to the primary lead market, leading to a decline in the in-plant inventory of primary lead smelters. Spot transactions changed from trading at a discount (against the SMM 1# lead average price) last month to trading at a premium this month. Most of the supply from primary lead smelters directly flowed into the consumer market, which may support a fluctuating trend of stronger lead prices. It is also worth noting that primary lead smelters in north and south-west China entered maintenance this week, and supply is expected to tighten further. However, after the rise in lead prices, losses for secondary lead smelters have been mitigated, and some secondary lead smelters intend to resume production. We need to be vigilant about the impact of the expected release of secondary lead supply on lead prices in the future. 》Subscribe to view historical SMM metal spot prices

SMM News on June 17: End-use consumption in the automotive battery market remains sluggish. Dealers continue to purchase as needed. Most producers are in a state of production cuts, with operating rates of production lines ranging from 50% to 90%. In addition, lead prices have been fluctuating and strengthening recently. Especially in the absence of secondary lead supply, downstream enterprises are opting more for primary lead to meet their rigid demand. 》Subscribe to view historical SMM metal spot prices

Overnight, LME copper opened at $9,678.5/mt, touching a low of $9,664/mt shortly after the opening bell.

[SMM Lead Morning Meeting Summary: Expectations of Supply Tightening Boost Lead Prices, but Caution Needed on Resumption of Secondary Lead Production] China's "Rising Consumption, Stable Production, Soft Investment" in May: Retail sales of consumer goods up 6.4% YoY, the highest growth rate since December 2023. Yesterday was the delivery day for the SHFE lead 2506 contract, and the transfer of lead ingot inventory due to delivery led to a continued increase in social inventory of lead ingots...

This week, there were no significant changes in end-use consumption in the e-bike and automotive battery markets. Dealers generally maintained a purchasing as needed model, and large enterprises resumed normal production after the Dragon Boat Festival holiday. Among them, the wholesale market for e-bike batteries was generally concerned about whether the price increases of first-tier brands would be implemented. Dealers were eagerly waiting to see, with battery inventories ranging from 7 to 30 days. Meanwhile, the automotive battery wholesale market was still in a sales promotions atmosphere, with dealers struggling to sell their inventories and holding a pessimistic sentiment about the future market. On the producer side, as lead prices gradually rose, lead-acid batteries maintained a purchasing as needed model and, during periods of insufficient secondary lead supply, opted more for primary lead. Spot transactions in South China relatively improved.