June 20, 2025: Secondary lead smelters in China are in “dire straits” following a fall in raw material stocks and operating activities, according to analysis published on June 16.
Data published by the Shanghai Metals Market (SMM) said lead prices are in the “doldrums” as a result of low levels of lead batteries being sent for scrap while demand for lead ingots is poor.
The update followed related analysis published by SMM claiming that total lead concentrate inventories at major Chinese ports in the week ending June 13 totalled 7,000 tonnes, down 3,000 tonnes from the previous week.
This indicated that tightness in the domestic lead concentrate market remains unresolved, SMM said. Low arrival volumes and persistent procurement pressure from smelters have kept concentrate availability constrained.
Meanwhile, the dual pressures of tight raw material supply and losses in finished products are hitting production in refineries, according to SMM.
Multiple recyclers have indicated that the daily average collection volume has declined by approximately 50% compared to the period from April to May (this year).
SMM said the same trend is observed in deliveries to secondary lead smelters. According to one major enterprise in central China, the daily average arrivals of waste batteries last month were around 40 trucks, while this month, the daily average arrivals are only around 15 trucks.
Due to tight supply of raw materials and intense competition among smelters, the prices of scrap batteries have remained strong.
Smelters have suffered significant losses, and in late May, several smelters called for a sharp drop in the purchase quotes for scrap batteries, SMM said.
At that time, the prices of waste EV batteries plunged by Rmb 500 ($70) per tonne daily, and some smelters in certain regions followed suit by reducing their quotes by Rmb 200 per tonne, “leading to chaotic market quotes” said SMM.
Collection stores and recyclers of waste lead-acid batteries, fearing further price drops, sold off their stocks. However, due to limited market supply, after a period of selling, smelters once again faced poor arrivals.
To boost procurement competitiveness, some companies have adopted a point-to-point quoting model, offering different settlement prices based on different recyclers and quantities of reported goods.
But with “such competitive pressure compounded by the lead price’s struggle to rise, smelters continue to operate at a loss”.
