Delivery warehouse was full, lead prices likely to fall from high levels

Published: May 26, 2021 09:38

Save

Lead prices bottomed out after the settlement as bears sold out positions. Domestic lead concentrate supply remained tight, and the quotations were chaos, but the smelters did not reduce production significantly. The primary lead supply was sufficient.

SHANGHAI, May 26 (SMM)—Lead prices bottomed out after the settlement as bears sold out positions. Domestic lead concentrate supply remained tight, and the quotations were chaos, but the smelters did not reduce production significantly. The primary lead supply was sufficient. Tianchuan warehouse was full of delivered primary lead, so the inventories may increase at Henan smelters or other social warehouses. Primary lead prices remained at wide discounts. Secondary lead profits were low, but the production was high. Therefore, the overall lead prices will remain low.

Domestic fundamentals were weak due to the inventory increase last week, while the overseas fundamentals were stable. Domestic market was considering to profit through buying domestic contracts and selling overseas market amid the lower SHFE/LME ratio. The profit room is expected to be large in the peak season after August, when domestic inventories start to decrease and the supply increase is limited. LME lead is expected to move between $2,155-2,255/mt this week, and the most traded lead futures contracts are expected to move between 15,400-15,800 yuan/mt.

Lead Price forecast

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 to learn 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

4 hours ago

NPC Deputy Proposes Expanding Payment Regulation to Benefit More Automotive Suppliers

It was reported that during this year’s Two Sessions, NPC deputy Liu Changhai, Chairman of Camel Group, proposed expanding the scope of application of the Regulation on Ensuring Payment to Small and Medium-Sized Enterprises from small and medium-sized suppliers in the supply chains of large enterprises (mainly 17 key automakers) to above-designated-size enterprises in the automotive industry, thereby creating a “hard constraint on payment terms across the entire industry.” He also proposed clearly defining “completion of goods delivery and acceptance” as the period start point, and strictly prohibiting the disguised extension of payment terms through measures such as deliberately delaying acceptance and the non-compliant use of commercial bills of exchange.

4 hours ago

[Lead-Acid Battery Market] NPC Deputy Zhang Tianren Proposes Big Data Monitoring, Stricter Entry Rules

[Lead-Acid Battery Market Update] It was reported that during this year’s Two Sessions, Zhang Tianren, a deputy to the National People’s Congress and Chairman of Tianneng Holding Group, proposed that relevant national ministries and commissions leverage big data to monitor nationwide battery capacity, production, utilization rate, and market demand, and regularly release an overcapacity early-warning index to clearly restrict outdated technologies and inefficient capacity. He also proposed raising market entry thresholds for battery production and recycling, shifting from a “licensing” system to a national ministry “filing” system, further revising the “Standard Conditions for the Battery Industry,” and prohibiting low-level capacity from entering the market.

4 hours ago

9 hours ago

Data: SHFE, DCE market movement (Mar 04)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 04 Mar , 2026

9 hours ago