Downstream enterprises' inquiries and purchasing willingness improved compared to the previous period; the trading atmosphere in the spot order market became more active [SMM Lead Morning Comment]

Overnight, LME lead opened at $2,022/mt, fluctuated downward to a low of $2,005.5/mt during the Asian session, fluctuated upward after entering the European session, peaked at $2,049.5/mt by the end of the session, and finally closed at $2,046/mt, up 0.86%.

Overnight, the most-traded SHFE lead 2412 contract opened at 16,715 yuan/mt, briefly touched a low of 16,655 yuan/mt at the beginning of the session, then fluctuated upward due to shorts reducing positions, peaked at 16,795 yuan/mt, and finally closed at 16,755 yuan/mt, up 0.48%.

Macro side, the US dollar index surged to a four-month high due to expectations that Trump's immigration, tax, and trade policies after his election victory would stimulate higher growth and inflation in the US.

Fundamentals, the market supply of lead ingots was moderate, with a tight supply of secondary lead and firm quotations from suppliers. Recently, the transaction of primary lead was good, and downstream enterprises' inquiries and purchasing willingness improved compared to the previous period. Additionally, as pollution weather warnings were gradually lifted, many regional refineries resumed normal production, potentially increasing the demand for battery scrap, and raw material prices also supported lead prices. Overall, lead prices may still fluctuate rangebound in the near term.