SMM November 12:
Overnight, LME lead opened at $2,059/mt, fluctuated downward during the Asian session, touched a low of $2,047/mt upon entering the European session before rebounding upward. Due to market concerns over deterioration in the US labour market and the continuous decline of the US dollar index, LME lead saw pressure released, touching a high of $2,067.5/mt toward the end of the session, and finally closed at $2,067/mt, up $10.5/mt or 0.51%, marking a four-day winning streak.
Overnight, the most-traded SHFE lead 2512 contract opened at 17,485 yuan/mt, touched a low of 17,440 yuan/mt early in the session. Due to bears reducing positions, SHFE lead fluctuated upward all the way to a high of 17,570 yuan/mt, pulled back slightly at the tail of the session, and finally closed at 17,520 yuan/mt, up 30 yuan/mt or 0.17%, forming a small bullish candlestick.
As the SHFE lead 2511 contract approaches delivery, suppliers are gradually transferring lead ingots for delivery to social warehouses, and social inventory of lead ingots continues to increase. In addition, several large secondary lead smelters have resumed production in recent months. As the backlog of long-term contract deliveries from earlier periods is gradually completed, spot orders in the market are expected to increase. Furthermore, imported lead is arriving at ports in succession, with some going directly to downstream enterprises. Supply is gradually loosening, while the expected decline in the operating rate of downstream battery producers due to the onset of the off-season for EV battery consumption may lead to weaker procurement demand for lead ingots. In summary, lead prices are expected to maintain a fluctuating trend in the short term, and subsequent vigilance is needed against a continued pullback in lead prices.
Data Source Statement: Except for publicly available information, other data are derived by SMM based on public information, market communication, and SMM's internal database model, and are for reference only, not constituting decision-making advice.
