Overnight, LME lead dipped to a low of $1,947.5/mt, recording a small bearish candlestick with a long lower shadow [SMM Lead Morning News]

SMM May 23:

Overnight, LME lead opened at $1,975/mt. After touching a high of $1,977/mt in the Asian session, it plunged, reaching a low of $1,947.5/mt in the European session. It then rallied to close at $1,964/mt, down 0.73%, with a small bearish candlestick featuring a long lower shadow.

Overnight, the most-traded SHFE lead 2507 contract opened at 16,685 yuan/mt. After briefly touching a low of 16,655 yuan/mt in the early session, it fluctuated rangebound, reaching a high of 16,715 yuan/mt, and eventually closed at 16,695 yuan/mt, down 0.51%.

After the delivery of SHFE lead last week, the supply of primary lead re-entered the market this week. Some downstream enterprises prioritized local procurement, leading to a significant decrease in social inventory in the Jiangsu, Zhejiang, and Tianjin regions. Meanwhile, with the advancement of new capacity and production resumptions in secondary lead, the expected increase in supply has risen. However, the off-season trend in the lead-acid battery market remains unchanged. It is anticipated that after the expected increase in supply materializes, the decline in social inventory of lead ingots may slow down. Due to the significant drop in procurement quotes for secondary lead raw materials, the cost support for lead prices has weakened, and short-term bearish sentiment is strong.