Social inventory of lead ingots accumulates, putting pressure on lead prices to rise overnight [SMM Lead Morning News]

SMM July 1:

Overnight, LME lead opened at $2,040/mt. After touching a low of $2,036/mt in the Asian session, it fluctuated upward. Entering the European session, it reached a high of $2,053.5/mt before pulling back slightly at the end of the session, closing at $2,041.5/mt with no change in price.

Overnight, the most-traded SHFE lead 2508 contract opened at 17,200 yuan/mt. After touching a high of 17,220 yuan/mt in the early session, it plunged to a low of 17,140 yuan/mt before rebounding slightly at the end of the session, closing at 17,170 yuan/mt with a 0.15% increase.

Currently, downstream enterprises are maintaining purchasing as needed. Coupled with the fact that the delivery time is still far away, although there is an expectation of an increase in social inventory of lead ingots, before widespread production resumptions at secondary lead enterprises, it is expected that there will be no significant inventory buildup in the social inventory in the short term, and the drag on lead prices will be limited. Subsequent attention should be paid to the production trends of lead smelters and the strength of support for lead prices from raw material costs.