SHANGHAI, Nov 29 (SMM) – SHFE and LME metals fell across the board last Friday due to the COVID-19 pandemic outbreak in Africa, while the lead closed with gains.
The lead prices still stand firm on Monday, and SHFE lead rose 0.46% to close at 15,405 yuan/mt in the intraday today.
At the same time, the spot prices of SMM #1 lead ingot averaged 15,325 yuan/mt, up 4.1% from November 19.
On the supply side, the primary lead smelters are resuming the production recently, and the operating rates are rising.
According to SMM survey, the average operating rate of primary lead smelters stood at 59.29% as of November 26, up 10.42 percentage points from October 29.
Meanwhile, the output of secondary lead declined significantly due to equipment maintenance and inspections of solid waste management centre.
The overall supply remains tight, but is expected to ease amid production recovery of smelters.
SMM lead ingot invnetories across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin totalled 134,900 mt as of November 29, down 81,100 mt or 37.5% from September 24.
SMM will continue to monitor the impact of production resumption on inventories.
The lead-acid battery consumption recovered gradually in Southeast Asia amid alleviated COVID-19 pandemic. The export orders of ups and automobile battery companies increased. The lead ingot purchase by downstream battery plants incresaed steadily.
The cost support to lead prices will remain strong amid brisk fundamentals. However, the upward room is limited due to the growing supply. The lead prices are expected to keep congesting in a short term.