SMM January 12:
The most-traded SHFE lead 2602 contract opened at 17,445 yuan/mt. At the beginning of the session, affected by the retreat of bears, SHFE lead fluctuated rangebound, touched a high of 17,515 yuan/mt, then pulled back slightly toward the end, and finally closed at 17,440 yuan/mt, up 85 yuan/mt or 0.49%. The daily chart recorded two consecutive positive closes.
To ensure raw material supply, some smelters kept their scrap battery offers stable or slightly higher. Scrap battery suppliers' reluctance to sell weakened, and their willingness to sell generally increased. Several large smelters in central and east China reported relatively sufficient arrivals recently. However, downstream battery industry performance was weak, and end-user new battery sales were under pressure, leading to a decline in battery enterprises' operating rates and low purchasing enthusiasm for lead ingots. Against this backdrop, finished product inventories at primary lead and secondary lead smelters gradually accumulated, which is expected to exert some pressure on lead prices' rise. Moreover, caution is needed against the risk of further inventory pressure after delivery.
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 not constituting decision-making advice.
