Latest Update in the SMM Lead Market

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Dec 25, 2024

[SMM Survey: Frequent Environmental Protection Incidents Limit Supply, Lead Ingot Social Inventory Decline Continues] According to the survey, frequent environmental protection incidents have recently occurred in the lead market, especially in Anhui, the largest production area of secondary lead, where production has been restricted due to smog. This marks the third time in December that an orange smog alert has been issued, and local secondary lead enterprises continue to face production limitations. Meanwhile, environmental protection inspections are still ongoing in the Hunan region...

[SMM Shanghai and Other 1# Lead Markets: Supply Tightens, Driving Lead Prices Up While Spot Trading Activity Declines] SMM, December 26: In the Shanghai market, Honglu lead was quoted at 17,380-17,410 yuan/mt, with a premium of 0-10 yuan/mt against the SHFE 2501 contract; in the Jiangsu-Zhejiang region, JCC lead was quoted at 17,380-17,410 yuan/mt, with a premium of 0-10 yuan/mt against the SHFE 2501 contract. Frequent environmental protection incidents in the domestic market have had a greater impact on supply than on consumption. After the opening in the morning, SHFE lead fluctuated upward...

[SMM Lead Market Midday Review: Sluggish Consumption Combined with Year-End Closing, Refined Lead Suppliers Report Difficulties in Sales] SMM, December 26: Today, the SMM 1# lead average price increased by 50 yuan/mt compared to yesterday, reaching 17,275 yuan/mt. Mainstream ex-factory quotations for secondary refined lead with tax were quoted at discounts of 50-0 yuan/mt against the SMM 1# lead average price, with some quoted at premiums of 25 yuan/mt ex-factory………

Futures Market: LME copper was closed overnight. The most-traded SHFE copper 2502 contract opened at 74,180 yuan/mt overnight, initially hitting a high of 74,210 yuan/mt before fluctuating downward to an intraday low of 74,070 yuan/mt.

[SMM Lead Morning Brief: SHFE Lead Trading Significantly Weakens at Year-End] SMM, December 26: Overnight, the most-traded SHFE lead 2502 contract opened at 17,350 yuan/mt. As the year-end approaches, market trading further weakened, with trading volume and open interest continuing to shrink...

[SMM Lead Morning Meeting Summary: Frequent Environmental Protection Incidents Domestically, Lead Prices Show Strong Resilience] The PBOC has reduced the scale of MLF rollovers for five consecutive months and kept rates unchanged for three consecutive months, with a large net withdrawal of 1.15 trillion yuan. On the fundamentals, the overseas market has entered a holiday mode, while the domestic market has also seen a slowdown in trading due to year-end factors. Currently, environmental protection measures in many regions of China are impacting lead ingot supply more significantly than the consumption side...