SMM November 19:
The most-traded SHFE lead 2601 contract opened at 17,185 yuan/mt today. After briefly touching a low of 17,170 yuan/mt early in the session, it rebounded slightly due to position reductions by bears, climbing above the daily average line by the close and ending at 17,250 yuan/mt, up 20 yuan/mt or 0.12%. The most-traded SHFE lead contract fell below the 40-day average but found support at the 60-day average, ending a three-day losing streak and forming a small bullish candlestick.
The lead market continues to show weak supply-demand dynamics. On one hand, some secondary lead smelters in central China have begun feeding raw materials and resuming production, boosting demand for secondary lead raw materials and providing some support to the market. However, the ongoing nationwide temperature drop has significantly impacted the recycling industry chain, leading to persistently tight supply of secondary lead raw materials, which to some extent limits the actual output efficiency of smelters that have resumed production. Overall, lead prices are expected to maintain sideways movement with overall stability in the short term.
Data source statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not as decision-making advice.
