Lead Market Outlook: Consumption Miss Spurs Inventory Build-Up, PPI Decline Boosts Rate Cut Hopes, Prices Eye Short-Term Volatility

Publié: Aug 14, 2024 09:00
[SMM Lead Morning Meeting Summary: Consumption Falls Short of Expectations, Leading to Accumulation of Lead Ingots; Lead Prices May Fluctuate Weakly in the Short Term] The Producer Price Index (PPI) in the US for July fell more than expected across the board, with the year-on-year growth rate narrowing to 2.2%. Service costs declined for the first time this year, indicating a slowdown in inflation, which is a positive factor for interest rate cut bets. Market bets on a 50 basis point interest rate cut by the Federal Reserve in September have once again exceeded 50%. In terms of fundamentals, there is a divergence in the inventory of lead ingots at home and abroad. Due to the approaching delivery of Shanghai lead futures, the inventory of lead warehouse receipts at the Shanghai Futures Exchange has continued to rise. Meanwhile, a few medium to large-sized lead-acid battery enterprises...

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[SMM Lead Morning Meeting Summary: Consumption Falls Short of Expectat - Shanghai Metals Market (SMM)