SMM December 1:
Last Friday, LME lead opened at $1,983/mt, fluctuated upward during the Asian session due to a decline in LME lead inventory, and touched a high of $1,996.5/mt upon entering the European session. Subsequently, it plunged as bears increased their positions, probing a low of $1,977/mt before finally closing at $1,981/mt.
On Friday evening, the most-traded SHFE lead 2601 contract opened at 17,100 yuan/mt, lightly touched a high of 17,175 yuan/mt at the beginning of the session before pulling back. It then consolidated weakly due to bears increasing their positions, ultimately closing at a low of 17,080 yuan/mt, down 0.06%, forming a bearish candlestick with a barefoot star shape.
Entering December, factors such as production cuts or maintenance at primary lead and secondary lead enterprises persist, leading to regionally tight supply of lead ingots. Meanwhile, lead consumption has relatively improved, and lead ingot inventory may remain at low levels, providing some support to lead prices. Subsequent attention should be paid to the conventional year-end inventory building by downstream enterprises. If the destocking of lead ingots expands, lead prices will gradually rebound.
Data Source Statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and do not constitute decision-making advice.
