SHANGHAI, Nov 24 (SMM) – The most-traded SHFE lead rebounded this week and rose over 2% intraday. The most-traded SHFE lead rose 4.31% from a low of 14,620 yuan/mt on October 11.

SMM #1 lead ingot averaged 15050 yuan/mt today, up 325 yuan/mt or 2.21% from November 19.
The production of primary lead stabilises while many secondary lead producers may undergo maintenance. Therefore, the output of secondary lead is likely to decline. In addition, the exports of refined lead in October were as high as 26,643 mt, which is rarely seen.

The lead ingot stocks across domestic five markets have declined since September 26. Social inventory of lead ingots across five markets totalled 154,400 mt as of November 22, down 61,600 mt or 28.52% from a high point on September 26.

Downstream consumption was muted. 

Sound export data and the news of output cut at Glencore offer support to futures lead. Lead prices are expected to be further supported by falling social inventory and lead ingots decrease estimate.