Easing of tariff events boosts market sentiment, with lead prices holding up well [SMM Morning Lead News]

SMM June 12:

Overnight, LME lead opened at $1,982/mt, traded within a narrow range during the Asian session, and then rebounded to make up for losses after hitting a low of $1,978.5/mt in the European session. It reached a high of $1,995/mt towards the close and finally closed at $1,993.5/mt, up 0.3%.

Overnight, the most-traded SHFE lead 2507 contract opened higher with a gap at 16,870 yuan/mt, fluctuated downward after briefly touching a high of 16,890 yuan/mt in early trading, hit a low of 16,840 yuan/mt towards the close, and finally closed at 16,855 yuan/mt, up 0.09%.

Supply side, there are currently no signs of further expansion in the production cuts and suspensions at secondary lead smelters. Attention should be paid to the impact of maintenance work on delivery brand primary lead during the second half of the month on supply and lead prices. On the demand side, mainstream lead-acid battery brands have recently announced plans to raise prices, while other lead-acid battery producers are adopting a wait-and-see attitude. If the market accepts the price hikes by mainstream brands, there may be a slight follow-through increase. Macro side, there is still room for easing in the tariff dispute, and market sentiment has improved. In the short term, lead prices are likely to hold up well.