LME Lead Closed Slightly Lower, SHFE Lead Edged Up in Weak Trading [SMM Lead Morning Meeting Summary]

Published: May 19, 2026 08:46

Save

Futures:

Overnight, LME lead opened at $1,983.5/mt, with prices moving sideways within the $1,976-1,987/mt range, fluctuating repeatedly around the average price line of $1,981/mt. The tug-of-war between longs and shorts was intense, with no clear unidirectional trend. It finally closed at $1,981/mt, down $3/mt, a decline of 0.15%.

Overnight, the most-traded SHFE lead 2026 contract opened higher with a gap at 16,505 yuan/mt. At the beginning of the session, SHFE lead prices briefly fluctuated downward, hitting a low of 16,435 yuan/mt, then fluctuated higher during the session, and pulled back slightly near the end, finally closing at 16,485 yuan/mt, recording a small bearish candlestick, up 10 yuan/mt, a gain of 0.06%.

On the macro front:

Trump stated that he canceled the military strike plan against Iran originally scheduled for tomorrow (May 19). Waller will be sworn in as Fed Chairman on Friday, with the ceremony presided over by Trump. The US Treasury Secretary announced another 30-day extension of the Russian seaborne oil sanctions waiver. UK Prime Minister Starmer emphasized he would not resign, saying he still plans to participate in the next UK general election. CSRC: Push forward the deepening reform of the Beijing Stock Exchange with greater efforts. NBS: From January to April, the national above-scale industrial value-added output was up 5.6% YoY.

Spot fundamentals:

Yesterday, SHFE lead remained in the doldrums, with the operating center shifting further down WoW. Suppliers showed low enthusiasm for shipments, with a few quoting at premiums. Secondary lead side, smelters shipped along with the market, but quotes remained relatively firm, with secondary refined lead quoted at parity with SMM #1 lead on an ex-factory basis, and a few quoted at premiums. Some downstream enterprises intended to buy the dip, but bargaining was frequent, and they preferred cargoes self-picked up from production site. Transactions in the Jiangsu, Zhejiang, Shanghai market were scarce.

Inventory: On May 18, LME lead inventory decreased by 750 mt to 264,250 mt; SMM lead ingot social inventory across five regions pulled back MoM.

Lead price forecast for today:

Last week's decline in lead prices triggered panic selling by recyclers, and the pressure from raw material inventory shortages at secondary lead smelters was alleviated on a phased basis. This week, production cuts and shutdowns at smelters caused by tight raw material supply improved somewhat, but the overall industry operating rate remained at a low level. Combined with declining imported lead inflows, the supply side showed marginal contraction. The demand side continued its weak trend, and the supply-demand double-weakness pattern persisted. SHFE lead prices are expected to maintain a fluctuating trend in the short term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

15 hours ago

Data: SHFE, DCE market movement (Jun 16)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 16 Jun , 2026

15 hours ago

16 hours ago

SHFE lead 2607 closed higher during the day, with the 5-day moving average providing short-term support [Lead Futures Brief Review]

16 hours ago

17 hours ago

Central Asia Metals’ copper-zinc output beats last year

Central Asia Metals (CAML) announced that, thanks to improved operational efficiencies, its copper and zinc production for the first five months of 2026 both surpassed the same period last year. Copper output from the Kounrad operation in Kazakhstan totalled 5,141 tonnes, a near 4% increase over the last year. Meanwhile, the Sasa mine in North Macedonia produced 7,566 tonnes of zinc in concentrate, up over 2% compared to last year. In terms of pricing, the company reported significantly higher realized metal prices during the period. The average price of copper reached $13,076 per tonnes, representing a massive jump of nearly 40% over the last year, while average zinc prices rose 19% to $3,299 per tonne. In addition, historically low treatment charges for lead, which have turned negative, further boosted Sasa’s revenues. CEO Gavin Ferrar noted that the group is shaping up to deliver strong profitability and cash generation in the first half of 2026. Currently, the company is actively pushing forward with its acquisition of Australia's Cygnus Metals, announced last week, to expand its footprint into a high-grade copper-gold project in Quebec, Canada. The company remains highly confident in meeting its full-year production guidance (12,000–13,000 tonnes of copper, 18,000–20,000 tonnes of zinc concentrates, and 26,000–28,000 tonnes of lead concentrates).

17 hours ago