SMM News on July 17:
The most-traded SHFE lead 2508 contract opened at 16,890 yuan/mt today, oscillating around the 16,860 yuan/mt level during the day, with a low of 16,820 yuan/mt, and finally closed at 16,845 yuan/mt, down 0.3%. The open interest stood at 51,951 lots, marking three consecutive days of decline.
In terms of supply during the peak season, after the continuous weakening of lead prices, the absolute prices of scrap battery and lead concentrates followed suit, slightly lowering the cost support beneath lead prices. End-use consumption has yet to materialize. Before the implementation of tariffs in August, battery orders exported to the US from various regions may be affected and decline. Domestic battery enterprises are cautious about the price drop, with many adopting a wait-and-see attitude. Spot purchases lean towards smelter supplies. After the July delivery, there is still a slight increase in social inventory of domestic lead ingots. Following the short-term weakening of lead prices, except for individual smelters that refuse to budge on prices and withhold sales or pre-sell due to reasons such as supply decline, subsequent rebounds still require support from downstream operations and actual performance of end-use consumption. Lead prices may continue to oscillate and consolidate.
Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market exchanges, and relying on SMM's internal database models, for reference only and not constituting decision-making advice.
