Overall, the secondary lead market will remain in a pattern of "weak cost support and strong consumption suppression" in the short term. Smelter production resumptions in June will find it difficult to fully offset previous cuts, with the supply side showing marginal improvement but remaining tight. Lead prices will continue to fluctuate weakly.

[SMM Brass Billet Flash] In May, the overall operating rate of copper billet enterprises stood at 49.27%, down 2.91 percentage points MoM and 0.65 percentage points YoY. By enterprise size, large enterprises, leveraging advantages in raw material channels and capital, maintained relatively stable production, with an operating rate of 56.01%; medium-sized enterprises were under notable pressure, with the rate dropping to 42.02%; small enterprises were hit by triple shocks—raw material shortages, losses, and insufficient orders—with the operating rate at only 24.96%. The operating rate gap among large, medium, and small enterprises continued to widen, and polarization in the industry intensified.

Operating rate data showed a continued pullback, with significant polarization among enterprises. Data indicates that the comprehensive operating rate for copper billet enterprises in May stood at 49.27%, down 2.91 percentage points MoM and down 0.65 percentage points YoY.

[SMM Analysis]Supply Tightening Offsets Off-season Pressure, June ADC12 Price Center Expected to Rise

As resource security and decarbonization become increasingly important, major economies are strengthening efforts to retain aluminum scrap. From the EU's review of export controls and the U.S. strategic asset proposal to Japan's circular economy initiatives and policies in the UAE and South Africa, these developments could reshape global scrap flows and affect secondary aluminum markets.

In May, European APT prices held firm above $3,000/mtu amid tight supply, while scrap tungsten dropped sharply. China's tungsten prices rebounded late in the month as sentiment improved, though downstream demand remained soft. A cautious bottoming trend emerged.

In May 2026, China's secondary lead production declined significantly, down 18.96% MoM and 9.26% YoY, while secondary refined lead pulled back 19.16% MoM and 15.03% YoY. According to SMM data, spot lead prices were in the doldrums in May, with the SMM #1 lead ingot monthly average price at approximately 16,475 yuan/mt.……

Saint-Gobain will discontinue production of its Alumina-Zirconia-Silica (AZS) line at the Falconer facility in the US, with production expected to end in August and 79 positions affected. The company said other product lines at the site will continue operating. Industry reports show AZS refractory manufacturing is facing rising energy costs, tighter environmental regulations and growing zirconium raw material shortages, driving production costs higher. Increasing demand for high-purity zirconia from sectors such as solid-state batteries, nuclear applications and advanced manufacturing is also intensifying raw material competition. Markets believe weaker North American construction demand and elevated operating costs continue to pressure profitability in related manufacturing sectors.

This week, the operating rate of China's leading downstream aluminum processing enterprises was 64.1%, down 0.3 percentage points WoW.

[SMM Coking Coal and Coke Daily Brief] News: The market heard that coke would launch the fifth round of increase tomorrow, with a magnitude of 50 yuan/mt rather than the previously rumored 100 yuan/mt. In terms of supply, coke price increases failed to cover coking coal price increases, squeezing coke producers' profits. Additionally, most coal mines in Shanxi suspended production for self-inspection, and raw material shortages led to passive production cuts at some coke producers, resulting in declining coke supply. Demand side, steel mills maintained high operating rates, hot metal production stayed at a relatively high level, and buyers actively procured coke. In summary, fundamentals remained tight, and the coke market may hold up well in the short term.