SMM, April 29:
Overnight, LME lead opened at $1,948/mt, touching a low of $1,942/mt early in the session. As the US dollar index weakened, the pressure on LME lead eased, leading to a rebound. It reached a high of $1,978.5/mt towards the end of the session and closed at $1,977/mt, up 1.65%.
Overnight, the most-traded SHFE lead 2506 contract opened at 17,015 yuan/mt, touching a high of 17,020 yuan/mt early in the session. It fluctuated around the daily moving average, with a low of 16,940 yuan/mt, and closed at 16,965 yuan/mt, up 0.24%.
Recently, the imbalance in scrap battery supply has been prominent. Last week, due to issues such as insufficient scrap and losses, the number of secondary lead enterprises reducing or halting production increased, leading to a temporary reduction in lead ingot supply. The inventory at social warehouses around lead consumption hubs continued to decline. Additionally, as this week approaches the Labour Day holiday, downstream lead-acid battery enterprises are gradually planning to take holidays, with some enterprises already reducing their pre-holiday procurement. It is expected that the subsequent decline in social inventory of lead ingots will slow down. During the Labour Day holiday, there will be a temporary absence of lead consumption. Coupled with the upcoming delivery of the SHFE lead 2505 contract after the holiday, the social inventory of lead ingots will show a trend of halting its decline and starting to rise. Overall, the trend of lead prices may maintain a fluctuating pattern.
