It was learned that the SMM weekly composite operating rate of lead-acid battery enterprises in five provinces was 73.92% from March 13 to March 19, 2026, up 0.46 percentage points WoW from the previous week. Recently, production at lead-acid battery enterprises remained relatively stable. Apart from slight production adjustments at a small number of enterprises, changes in production at other enterprises were relatively small. Over the past two years, as AI development accelerated, battery demand from data centers improved. In particular, lead-acid battery enterprises that secured tender orders had full order books, with production lines operating at full capacity. In addition, for civilian battery products, end-use consumption in the e-bike and automotive battery markets showed mediocre performance. Considering that from April to May is the traditional consumption off-season, some enterprises with average order intake only maintained operating rates at 70-80%, and needed to adjust production based on subsequent order conditions.

SMM News, March 20: Lead prices weakened this week, and secondary lead smelters lowered scrap battery purchase prices due to profit pressure. Today, the average scrap battery purchase prices at smelters were: waste e-bike battery at 9,825 yuan/mt, waste automotive lead-acid battery (white shell) at 9,875 yuan/mt, and waste automotive starter lead-acid battery (black shell) at 10,125 yuan/mt. Recyclers also followed the decline, and after prices were cut, downstream collection outlets held back cargoes, with recycling volume decreasing WoW. Smelter inventory diverged, with low-inventory smelters holding only enough for one week of production, while high-inventory smelters made limited just-in-time procurement after small price cuts. According to the SMM survey, market expectations for lead prices were weak, and if prices continue to weaken next week, scrap battery prices are expected to be lowered again. This week, the mainstream self pick-up price at major ports for imported crude lead was at a discount of 50-0 yuan/mt against the SMM #1 lead average price, while some cargoes were at a premium of 50 yuan/mt. Domestic secondary crude lead cargoes were quoted firmly due to insufficient operating rates caused by cost pressure. As of this Friday, the mainstream tax-excluded ex-factory prices stood near 15,200 yuan/mt. Going into next week, imported lead is still expected to arrive at ports one after another, and downstream enterprises have been active in making inquiries. SMM expects domestic secondary crude lead supply to remain tight. » Subscribe to View Historical SMM Metal Spot Prices

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By late March, the consumption driven by dealers' customary post-holiday restocking in the lead-acid battery market had been largely released. Meanwhile, end-use consumption in the e-bike and automotive battery markets was generally mediocre, especially as the impact of the new national standard for e-bikes disrupted supporting orders for new vehicles, and some lead-acid battery enterprises only maintained production based on sales. Lead prices fell this week. In the initial stage, downstream enterprises restocked at lower prices based on demand, but after lead prices fell again in the second half of the week, some enterprises became more cautious in procuring raw lead materials.

In the spot market, during this week (March 16, 2026-March 20, 2026), downstream battery enterprises gradually resumed operations to full production, and transactions in the spot primary lead market gradually improved. This week, mainstream transaction prices for primary lead in Henan were quoted at parity or slight premiums to the SMM #1 lead average price. Supply in Hunan was relatively tight, and smelters and suppliers quoted premiums of 30-50 yuan/mt over SMM #1 lead, with transactions concluded on just-in-time demand. This week, secondary refined lead was held firm and sellers were reluctant to sell due to losses on production and other factors. After downstream operations gradually resumed, just-in-time procurement mainly focused on primary lead, and spot transactions in the primary lead market improved slightly WoW.

SMM News, March 20: This week, secondary refined lead was mostly quoted at premiums of 0-75 yuan/mt against the SMM #1 lead average price, with some cargoes available for delivered premiums of 50 yuan/mt. Affected by falling lead prices, downstream wait-and-see sentiment, and relatively cautious procurement, suppliers showed weak willingness to sell, and overall market transactions were sluggish. This week, secondary lead smelters lowered scrap battery purchase prices, easing raw material cost pressure, and losses narrowed WoW; as of March 20, 2026, the theoretical comprehensive profit/loss for large-scale enterprises stood at -337 yuan/mt, versus -541 yuan/mt for small and medium-sized enterprises (the model's by-product revenue did not include tin and antimony). As smelters that resumed production continued to release capacity, ample supply weighed on lead prices. Combined with the wide range of cargo types available to downstream enterprises, spot order premiums for secondary refined lead are expected to narrow next week, while actual prices will still depend on changes in raw material costs. > Subscribe to View Historical SMM Metal Spot Prices

SMM News on March 20: The most-traded SHFE lead 2605 contract opened at around 16,461 yuan/mt intraday. Affected by broad declines across base metals, lead prices moved in a unilateral downward trend overall today, hitting a low of 16,270 yuan/mt during the session. Although prices edged up slightly toward the close, the rebound was limited, and the contract finally closed at 16,290 yuan/mt. A small bearish candlestick was recorded, down 125 yuan/mt, or 0.76%. Supply side, dragged down by low lead prices, suppliers of primary lead showed mediocre willingness to ship, while secondary lead producers held prices firm and were reluctant to sell due to cost pressure, leaving overall transactions sluggish. Demand side, downstream battery plants mainly purchased based on rigid demand under long-term contracts, while wait-and-see sentiment for spot orders remained strong. SMM expects SHFE lead prices to remain in the doldrums. Data Source Statement: Except for public 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.

This week, the second-life battery market showed clear structural divergence. On the cost side, although lithium carbonate prices saw a temporary uptick this week, they trended downward overall; nickel sulphate prices edged down slightly, while cobalt sulphate prices remained stable. The cost side was mainly affected by fluctuations in lithium carbonate prices. On the supply side, driven by terminal energy storage demand, inventories of new battery cells at battery cell manufacturers were critically low, and the supply of Grade A battery cells was heavily diverted, causing supply in the second-life battery market to remain tight. On the demand side, 280Ah and 314Ah energy storage battery cells were subject to concentrated procurement in the market, resulting in severe shortages and noticeably rising prices. Meanwhile, demand in the EV sector remained weak, inventory was relatively sufficient, and second-life power battery cell prices stayed stable.

This week (March 13, 2026–March 19, 2026), multiple enterprises in the solid-state battery sector were active: Dali Times commenced construction of a 2 GWh specialized semi-solid-state battery base; EVE’s Longquan Phase III/IV all-solid-state batteries rolled off the line in Chengdu; Chery released its 600 Wh/kg Rhino all-solid-state battery technology。

Dalian iron ore futures remained in the doldrums today. The most-traded contract, I2605, finally closed at 807.5 yuan/mt, down 0.55% from the previous trading day. Spot prices saw limited transactions, falling by about 2-5 yuan from the previous trading day. Traders offered quotes in line with the market, while steel mills remained cautious and on the sidelines, with some purchasing as needed. According to the SMM survey, as of March 19, total inventory across the 10 ports tracked by SMM stood at 119.62 million mt, up 630,000 mt MoM. Inventory trends diverged among mainstream products, with notable destocking in IOCJ fines and Newman fines. Inventory of Jimblebar fines also declined slightly. In addition, inventory of PB fines and Mac fines increased slightly. In the short term, improved fundamental demand for iron ore provided support to futures prices. However, close attention should be paid to tomorrow's long-term contract negotiations and the impact of the Middle East conflict, both of which could have a significant effect on iron ore prices.