SMM February 10:
Overnight, LME lead opened at $1,965/mt, fluctuating downward during the Asian session; it dipped to $1,948.5/mt during the European session, then rose due to a weaker US dollar index, touching a high of $1,976.5/mt before settling at $1,974.5/mt.
Overnight, the most-traded SHFE lead 2603 contract opened at 16,665 yuan/mt, briefly touched a low of 16,560 yuan/mt early in the session, then rebounded as bears reduced positions, reaching a high of 16,680 yuan/mt before closing at 16,665 yuan/mt, up 0.48%, forming a doji.
As previously shipped lead ingots arrived at warehouses in bulk, social inventory of lead ingots surged significantly, mainly in Jiangsu and Zhejiang warehouses. Last week, lead prices fell, prompting lead-acid battery enterprises to stockpile lead ingots intensively, causing a notable decline in smelters' in-factory inventory. This week, the last before the Chinese New Year, the final batch of lead-acid battery enterprises will begin holidays, further weakening lead consumption. Meanwhile, with the Spring Festival travel rush underway, non-local workers have returned home, reducing the number of vehicles in operation; some regions no longer support road transport. The buildup of lead ingot social inventory is expected to slow down, with inventory accumulation likely shifting more to smelters' in-factory inventory. Overall, lead prices were in the doldrums before the holiday.
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, for reference only and not as decision-making advice.
