SMM November 24:
The most-traded SHFE lead 2601 contract opened at 17,140 yuan/mt today. After moving sideways around the daily average line in early trading, it rebounded to around 17,200 yuan/mt by midday. However, due to insufficient support from the 60-day moving average, bulls reduced their positions, causing the contract to give up all of today's gains and close at 17,135 yuan/mt, down 30 yuan/mt, or 0.17%. This marked the third consecutive day of decline.
As lead prices continued to fall, some downstream battery plants mainly purchased based on rigid demand, with a strong wait-and-see sentiment. Secondary lead smelters primarily focused on delivering previously signed long-term contracts, while some spot orders were offered at parity or a discount of 50-0 yuan/mt. Due to cold weather, lead-acid batteries entered the off-season, leading to a decrease in recycling volume. Some waste lead-acid battery recycling enterprises in east China lowered their purchase prices by 50-25 yuan/mt, weakening cost support. With no factors driving a rebound in the futures market recently, lead prices are expected to remain in a fluctuating trend in the short term.
Data Source Statement: Except for public information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and do not constitute decision-making advice.
