Report Title - Lead Weekly Report: Weak Supply and Demand, Lead Price in Range-bound Fluctuation [1] Report Industry Investment Rating - Not provided Core Viewpoints - The domestic lead market shows weak supply and demand. The low inventory and reduced production of recycled lead support the Shanghai lead price, while the weakening consumption restricts the upward space of the lead price. It is expected that the lead price will maintain range-bound fluctuations [4]. - Trading strategies suggest a range-bound approach for single-sided trading, and temporary observation for arbitrage and options trading [4]. Summary by Directory Chapter 1: Market and Logic 1.1 Trading Logic and Strategy - **Supply Side**: The domestic lead concentrate processing fee this week reached 300 yuan/metal ton, and the SMM weekly processing fee for imported lead concentrate reached -135 US dollars/dry ton. Near the end of the year, the lead concentrate market remained inactive. For imported ores, some bids were as low as -200 US dollars/dry ton, with only a small amount of rigid-demand transactions. The processing fees for domestic ores were mostly for pre-sales in 2026, and remained stable in December [4]. - **Smelting Side**: The weekly operating rate of SMM's three - province primary lead smelters was 67.35%, a 1.82% increase from last week. The operating rates in Henan and Hunan remained stable. Although some smelters in Hunan were affected by environmental inspections, the electrolytic lead production remained stable this week, and is expected to decline slightly next week. A medium - large - scale smelter in Yunnan increased production after maintenance, and a small - scale smelter also slightly increased production. The SMM weekly operating rate of recycled lead in four provinces was 41.61%, a 3.75% decrease from last week. Due to air pollution control in East and North China, smelting enterprises in Anhui significantly reduced production. If the control is lifted this weekend, normal production will resume [4]. - **Consumption Side**: The weekly comprehensive operating rate of SMM's five - province lead - acid battery enterprises was 74.23%, a 0.41% decrease from last week. Since December, the implementation of the new national standard for electric bicycles has not significantly improved actual consumption. Instead, due to consumers being in the adaptation period, the decline in vehicle sales has dragged down battery consumption, leading some enterprises to reduce or plan to reduce production. The automotive battery market has entered the traditional consumption peak season, and the operating rates of most medium - and large - scale enterprises are relatively stable [4]. - **Inventory Data**: As of December 18, the total social inventory of SMM lead ingots in five regions was 20,500 tons, basically unchanged from December 11 and a decrease of 1,400 tons from December 15 [4]. 1.2 - 1.5 - These sections cover information on futures prices, price spreads, inventory data, and lead industry chain inventory, but specific data and analysis details are not fully presented in the text [5][8][11][15] Chapter 2: Raw Material End 2.1 - 2.3 - These sections involve raw material supply, including global and domestic lead ore production, lead concentrate imports, imports of silver concentrates, and the supply of recycled lead raw materials such as lead - containing waste and waste batteries. However, specific data and analysis details are not fully presented in the text [20][24][32] Chapter 3: Smelting End 3.1 - 3.7 - These sections cover aspects such as the global refined lead balance, domestic refined lead imports and exports, primary lead smelting enterprise profits, primary and recycled lead supply, and domestic lead ingot supply. However, specific data and analysis details are not fully presented in the text [39][46][47] Chapter 4: Demand End 4.1 - 4.4 - These sections analyze the demand for lead, including lead - acid batteries, lead alloys and their plates, the automotive industry, and industries such as motorcycles, electricity, and communication. However, specific data and analysis details are not fully presented in the text [71][74][79][82]

Report Title - Lead Weekly Report: Low Inventory and Marginal Decrease in Supply Lead to Strong and Volatile Lead Prices [1] Report Industry Investment Rating - Not provided in the content Core Viewpoints - The lead market shows a supply - demand imbalance. The supply of lead concentrate is tight, with domestic and imported ore markets facing different challenges. The smelting end has both production increases and decreases due to maintenance and other factors. The consumption end, especially the automotive battery sector, has improved. With low inventory and increased smelting costs, short - term lead prices may oscillate strongly in a range. Traders are advised to hold profitable long positions and be cautious of macro - factors, while waiting on arbitrage and options [4]. Summary by Directory 1. Chapter 1: Market and Logic 1.1 Trading Logic and Strategy - **Supply**: The domestic lead concentrate processing fee is 300 yuan/metal ton, and the SMM imported lead concentrate weekly processing fee is - 145 dollars/dry ton. The lead concentrate market is stable, with imported ore remaining tight. There are disputes in the 2026 long - term contract price negotiation. The market circulation of domestic ore is scarce as most smelters have pre - ordered fourth - quarter supplies [4]. - **Smelting**: The SMM three - province primary lead smelter operating rate is 65.92%, a 0.60% week - on - week decline. Some smelters in different regions have production changes due to maintenance. The SMM four - province recycled lead weekly operating rate is 48.37%, a 0.13% decline [4]. - **Consumption**: The SMM five - province lead battery enterprise weekly comprehensive operating rate is 74.46%, a 1.07% week - on - week increase. The automotive battery market has improved due to year - end production targets and approaching peak seasons [4]. - **Inventory**: As of December 4, the SMM lead ingot five - region social inventory is 23,600 tons, a decrease of 11,400 tons from November 27 and 7,100 tons from December 1 [4]. - **Trading Strategy**: Hold profitable long positions and beware of macro - factors; wait on arbitrage and options [4]. 1.2 - 1.5 - These sections list various data related to lead, including futures prices, price spreads, inventory data, and lead industry chain inventory, but no specific data analysis is provided in the text [5][8][11][14] 2. Chapter 2: Raw Material End 2.1 - 2.2 Raw Material Supply - Primary - Include data on global and domestic lead ore production, lead concentrate imports, import profits and losses, and domestic lead concentrate total supply and mine operating rates [19][23] 2.3 Raw Material Supply - Recycled - Involve the price of lead - containing waste materials, waste battery prices, and recycled lead smelter raw material inventory [31] 3. Chapter 3: Smelting End 3.1 Global Refined Lead - Covers global refined lead balance, production, and demand [38] 3.2 Domestic Refined Lead Import and Export - Includes import and export profits and losses, volumes, and net exports [45] 3.3 - 3.4 Primary Lead Smelting Enterprise - Involve primary lead smelting enterprise profits, including processing fees, smelting profits, and production data such as operating rates and output [46][49] 3.5 - 3.6 Recycled Lead - Include recycled lead enterprise costs, profits, and supply data such as operating rates and output [52][61] 3.7 Domestic Lead Ingot Supply - Composed of domestic lead ingot total supply, primary lead output, recycled lead output, and refined lead net exports [65] 4. Chapter 4: Demand End 4.1 Lead Battery - Contains lead battery enterprise operating rates, dealer and enterprise finished - product inventory, and import and export volumes [72] 4.2 Lead Alloy and Its Plates - Involve lead alloy prices and import and export data of lead alloys, lead plates, and other lead plates [75] 4.3 - 4.4 Other Demand Areas - Include data on the automotive industry (production, exports, and production structure), and production data of motorcycles, communication construction, and power projects [79][82]