Bears dominate, with lead prices in the doldrums [SMM Lead Morning News]

SMM May 22:

Overnight, LME lead opened at $1,984/mt. During the Asian session, it fluctuated rangebound. Entering the European session, it briefly touched a high of $1,994/mt. As bulls reduced their positions, LME lead plunged to a low of $1,955/mt. It partially recovered towards the end of the session, closing at $1,978.5/mt, down 0.4%.

Overnight, the most-traded SHFE lead 2507 contract opened at a high of 16,895 yuan/mt. After the opening, bears increased their positions, causing SHFE lead to fluctuate downward, reaching a low of 16,820 yuan/mt. It eventually closed at 16,835 yuan/mt, down 0.33%.

Smelters are facing tight supply of raw materials, with lead concentrates prices showing an upward trend and scrap battery purchase prices remaining high. Refineries are under significant operational pressure. Yesterday, some enterprises significantly reduced their scrap battery purchase quotes. Although some recyclers sold off their inventory due to fear of price declines, arrivals remained limited. Meanwhile, downstream battery orders are weak, and purchase willingness for lead ingots is sluggish. The increasing uncertainty in the international economic environment, coupled with the drag from spot performance, suggests that lead prices may continue to be trapped within a range.