The decline in social inventory of lead ingots, coupled with the weakening of the US dollar index, led to a reduction in short positions, resulting in a firm upward trend in the most-traded SHFE lead contract. [Lead Futures Brief Review]

SMM April 21, 2025 News

During the day, the most-traded SHFE lead 2505 contract opened at 16,910 yuan/mt. US President Trump stated that the Fed Chairman Powell should lower interest rates, and the US dollar index fell by more than 1% during the day. Nonferrous metals generally rose, and SHFE lead also moved upward firmly under this sentiment. Shorts reduced their positions, and SHFE lead reached a high of 17,080/mt during the day, finally closing at 17,040 yuan/mt, up 1.25%, with an open interest of 21,205. In terms of spot lead ingots: as the spread between futures and spot prices narrowed relatively, conditions for transfer to delivery warehouses were not met, and suppliers actively sold their goods, leading to a short-term decrease in arrivals at social warehouses. Due to the continuous rise in scrap battery prices, secondary lead companies were in a loss-making position, with firm offers and reluctance to sell, while downstream demand leaned toward primary lead. Overall, recent lead price trends were more influenced by macro sentiment than fundamentals.

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