SMM reported on January 3 that, as of January 10, the in-plant inventory of primary lead from major delivery brands stood at 3,100 mt, down by 3,500 mt compared to January 3. It is reported that this week, the smog alert in Henan Province was lifted, and vehicle transportation returned to normal. Meanwhile, supported by the Chinese New Year holiday, primary lead smelters actively shipped goods, leading to a rapid decline in spot premiums. As of January 10, spot order quotations were at premiums of 0-50 yuan/mt ex-factory against the SMM 1# lead average price. In contrast, secondary refined lead quotations were at premiums of 50-100 yuan/mt ex-factory against the SMM 1# lead average price. Downstream enterprises made purchases as needed at lower prices, resulting in a decrease in smelters' in-plant inventory. However, with the Chinese New Year holiday approaching, the destocking of primary lead smelters is expected to reverse into an inventory increase as downstream enterprises go on holiday and logistics operations halt.

[SMM Survey: Frequent Environmental Protection Incidents on Lead Ingot Supply Side Prompt Downstream to Consume Social Inventory] It is reported that last Thursday (January 2, 2025), Henan and Anhui regions successively issued orange smog alerts, leading to varying degrees of restrictions on the production and transportation of primary lead and secondary lead smelting enterprises...

[SMM Survey: Frequent Environmental Protection Incidents on the Lead Ingot Supply Side Prompt Downstream to Consume Social Inventory] It is reported that last Thursday (January 2, 2025), Henan and Anhui regions successively issued orange smog alerts, and the production and transportation of primary lead and secondary lead smelting enterprises were restricted to varying degrees...

[SMM Newsflash: Henan Smog Alert Lifted, Lead Ingot Transportation Resumes Normal Operations] It is reported that last Thursday (January 2, 2025), Jiyuan City in Henan Province initiated a heavy pollution weather orange alert across the entire city, implementing Level II control and emergency response measures. Among these, restrictions were placed on inbound vehicles for lead smelting enterprises, leading to extended lead ingot delivery cycles for some companies. According to the latest information, as of 8:00 PM yesterday (January 5), the heavy pollution weather orange alert in Jiyuan City has been lifted, and vehicle transportation has now returned to normal.

[SMM Newsflash: Henan Smog Alert Lifted, Lead Ingot Transportation Resumes Normal Operations] It is reported that last Thursday (January 2, 2025), an orange alert for heavy pollution weather was issued across the entire city of Jiyuan, Henan Province, implementing Level II control and emergency response measures. Among them, restrictions were placed on inbound vehicles for lead smelting enterprises, leading to extended delivery cycles for lead ingots at some enterprises. According to the latest information, as of 8:00 PM yesterday (January 5), the orange alert for heavy pollution weather in Jiyuan City has been lifted, and vehicle transportation has now returned to normal.

SMM, January 3: According to reports, as of January 3, the in-plant inventory of primary lead major delivery brands stood at 6,700 mt, an increase of 550 mt compared to December 27. It is reported that starting from December 28, the smog alert in Anhui was lifted, and secondary lead smelting enterprises gradually resumed production. After the New Year holiday, the environmental protection impact in Hunan also eased, and some primary lead smelting enterprises resumed production, leading to a temporary increase in lead ingot supply. However, in the latter half of the week, smelting enterprises in north China unexpectedly entered maintenance, and the maintenance period for smelting enterprises in Guangdong was extended. Additionally, smog alerts were reissued in Henan and Anhui, causing some enterprises to implement production cuts again, accompanied by restrictions on vehicle transportation. Although the resumption of production by smelting enterprises at the beginning of the week restored supply, downstream enterprises only purchased as needed after the holiday. Combined with transportation restrictions due to smog, some enterprises faced delivery constraints, resulting in a slight increase in the in-plant inventory of smelting enterprises.

Overnight, LME copper opened at $8,776.5/mt, initially bottomed at $8,766/mt, then its center rose and maintained wide fluctuations, peaking intraday at $8,819/mt before finally closing at $8,801/mt, up 0.22%.

[SMM Lead Morning Meeting Summary: Post-Holiday Downstream Procurement Gradually Recovers, Secondary Refined Lead Prices Inverted] Macro side, weak global manufacturing activity has heightened demand concerns, and the rise in the US dollar has also pressured the overall non-ferrous metals market. Fundamentals side, the recovery in primary lead smelter supply in December remains limited, with the impact of environmental protection-driven production restrictions in Hunan not yet fully dissipated. Coupled with a decline in smelter supply in Guangdong and Yunnan, the circulation of primary lead in the South China market is limited, and spot orders for primary lead continue to maintain high premiums.

[SMM News: Henan Smog Alert Resumes, Lead Smelting Enterprises' Production Unaffected but Transportation Restricted] It is reported that the Office of the Yellow River Basin High-Quality Development and Ecological Environment Protection Committee of Jiyuan City, Henan Province, has decided to issue an orange alert for heavy pollution weather across the city starting from 2:00 PM on January 2, 2025, implementing Level II control and emergency response measures. According to local lead smelting enterprises, as most local enterprises are classified as Category A, current production remains unaffected. However, vehicles below the National VI emission standard are restricted from entering the plants, potentially extending the lead ingot delivery cycle. SMM will continue to follow up with further reports.

[SMM Newsflash: Henan Smog Alert Resumes, Lead Smelting Enterprises' Production Unaffected but Transportation Restricted] It is reported that the Office of the Yellow River Basin High-Quality Development and Ecological Environment Protection Committee of Jiyuan City, Henan Province, has decided to activate an orange alert for heavy pollution weather across the city starting from 2:00 PM on January 2, 2025, implementing Level II control and emergency response measures. According to local lead smelting enterprises, as most local enterprises are classified as Category A, current production remains unaffected. However, vehicles below the National VI emission standard are restricted from entering the plants, potentially extending the delivery cycle of lead ingots. SMM will continue to provide follow-up reports.