LME lead prices fell continuously during the week and fell to a six-month low. LME lead inventory fell by 5,650 mt on a weekly basis, which can be seen as a signal for the lead price to stop falling. The contango of LME cash to the three-month lead contract expanded and stood at 44.75/mt as of December 7. LME lead prices will run at $1,995- 2,060/mt this week.
The delivery of the SHFE 2312 lead contract is about to cause inventory accumulation while tightening available spot supply. After the lead price fell, the market gradually accepted the decline in the price of battery scrap, which may cause lead prices to continue to shift downward. The most active SHFE lead contract prices are expected to move between 15,250-15,500 yuan/mt this week.
