Jinyuan Futures: recently, Shanghai lead fluctuates violently, and the fundamentals are weak to exert pressure.

Published: Mar 11, 2022 09:18
Shanghai Changchi Hongyang lead 15080 yuan / ton, 40 yuan / ton discount to Shanghai lead 2204 contract. Downstream enterprises purchase on demand for bargains, the enthusiasm of inquiry is better, and the trading activity of bulk order market is slightly better. LME inventories were flat at 39250 tonnes yesterday.

Spot market: Shanghai Changchi Hongyang lead 15080 yuan / ton, discount for Shanghai lead 2204 contract 180 yuan / ton; Jiang Copper, Copper Guan 15220 yuan / ton, 40 yuan / ton for Shanghai lead 2204 contract. Lead concussion in the future goes down, the price of the holder follows the market, the downstream enterprises purchase on demand at every bargain, the enthusiasm of inquiry is good, and the trading activity of the bulk market is slightly better. LME inventories were flat at 39250 tonnes yesterday. From a fundamental point of view, domestic processing fees remained low in March, while import processing fees fell month-on-month. Recently, the production of primary lead smelter has been stable, and the start-up has picked up steadily, but the shortage of raw materials limits the production of primary lead. In terms of recycled lead, due to the implementation of the fiscal and tax policy in March, raw material waste batteries are quoted with tax and the price is high, the problem of recyclers obtaining VAT invoices is expected to take a long time to solve, and the production and storage of enterprises may be limited after raw material consumption. The production of downstream storage enterprises has increased steadily, but lead batteries have entered the traditional off-season and lead prices are high. On the whole, the current supply side is affected by the shortage of raw materials and fiscal and taxation policies, and the supply increment is limited, but downstream storage enterprises have entered the off-season, and it is difficult to boost demand. In addition, when the current price gap continues to expand, enterprises are active in delivery, and social inventories continue to increase. Limit the driving force of lead price rise. Recently, the market is controlled by funds, and the futures price fluctuates violently, but under the background of weak fundamentals, the futures price is still weak.

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 for 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
BT’s Network Retirement Could Release Up to 200,000 Tonnes of Recycled Copper
26 mins ago
BT’s Network Retirement Could Release Up to 200,000 Tonnes of Recycled Copper
Read More
BT’s Network Retirement Could Release Up to 200,000 Tonnes of Recycled Copper
BT’s Network Retirement Could Release Up to 200,000 Tonnes of Recycled Copper
BT Group could recover up to 200,000 tonnes of copper as Openreach retires the UK’s legacy copper telecom network and shifts customers to full fibre. More than 22,000 tonnes have already been recovered since 2023, including a record 9,147 tonnes in the latest financial year. BT has a recycling arrangement with EMR, returning recovered copper cable into the global supply chain. The programme could become a meaningful source of secondary copper as legacy telecom networks are progressively decommissioned.
26 mins ago
Copper Development Association Issues New Guidance for Recycled Copper Content Reporting and Procurement
27 mins ago
Copper Development Association Issues New Guidance for Recycled Copper Content Reporting and Procurement
Read More
Copper Development Association Issues New Guidance for Recycled Copper Content Reporting and Procurement
Copper Development Association Issues New Guidance for Recycled Copper Content Reporting and Procurement
The U.S. Copper Development Association has released new guidance for recycled copper content reporting and climate-aligned procurement, aimed at OEMs, procurement teams, certifiers and auditors. The framework clarifies the treatment of pre- and post-consumer scrap and internal production loops, while stressing that recycled-content targets must account for the physical availability of copper scrap. CDA notes that simply raising recycled-content requirements can redirect existing scrap flows rather than necessarily increasing overall copper recycling.
27 mins ago
KCM Copper Recovery Gains Momentum as July Output Reaches 10,000 Tonnes
32 mins ago
KCM Copper Recovery Gains Momentum as July Output Reaches 10,000 Tonnes
Read More
KCM Copper Recovery Gains Momentum as July Output Reaches 10,000 Tonnes
KCM Copper Recovery Gains Momentum as July Output Reaches 10,000 Tonnes
Konkola Copper Mines reported that copper production reached around 10,000 tonnes in July, indicating continued progress in its operational recovery. KCM is targeting annual copper production of approximately 300,000 tonnes within three years, supported by mine development, processing improvements and the Konkola Deep Mining Project. The latest monthly output provides a fresh indication that KCM’s production ramp-up is gaining momentum following the restart of the Chingola B mine earlier this year.
32 mins ago
Jinyuan Futures: recently, Shanghai lead fluctuates violently, and the fundamentals are weak to exert pressure. - Shanghai Metals Market (SMM)