SMM June 13:
Overnight, LME lead opened lower with a gap at $1,988.5/mt. After touching a low of $1,983/mt in the Asian session, it fluctuated upward. Entering the European session, it reached a high of $1,999.5/mt, pulled back slightly in the tail end, and finally closed at $1,992/mt, down 0.08%.
Overnight, the most-traded SHFE lead 2507 contract opened higher with a gap at 16,990 yuan/mt. After touching a low of 16,890 yuan/mt in the early session, it fluctuated upward and reached a high of 16,950 yuan/mt, finally closing at 16,925 yuan/mt, up 0.15%.
This week, the production of primary lead smelters has steadily increased, while secondary lead enterprises are generally in a state of production reduction or suspension due to factors such as environmental protection, losses, and insufficient scrap supply, leading to a regional tightening of lead ingot supply. As there are not many sellers from secondary lead enterprises and prices remain firm, lead consumption has shifted towards the primary lead market. However, as the lead consumer market is still in the off-season, the improvement in spot lead market transactions has been limited. Next week, the front-month SHFE lead contract will enter delivery. The expectation of suppliers transferring inventory to delivery warehouse before delivery may still leave room for an increase in social inventory of lead ingots. In addition, we need to continue to monitor the impact of factors such as environmental protection inspections and scrap battery supply on the production of secondary lead enterprises, as well as the impact of maintenance at smelters producing delivery brand primary lead during the mid-month delivery period on the trend of lead prices.
