The weakening US dollar index coupled with bears reducing their positions led to an upward trend in lead prices [SMM Morning Lead News]

SMM July 21:

On last Friday, LME lead opened at $1,970.5/mt, fluctuating at lows during the Asian session, with a low of $1,967/mt. Entering the European session, boosted by macro news from the Chinese market, LME lead rallied, reaching a high of $2,014/mt in the closing session, and finally closed at $2,011.5/mt, up 1.72%.

On the evening of last Friday, the most-traded SHFE lead 2508 contract opened higher with a gap at 16,850 yuan/mt and then rallied firmly. As the Ministry of Industry and Information Technology (MIIT) announced plans to promote the stable development of key industries such as non-ferrous metals, bears reduced their positions, driving SHFE lead to a high of 16,995 yuan/mt. It finally closed at a high of 16,980 yuan/mt, up 0.95%.

The impact of maintenance at primary lead smelters intensified, coupled with the widening losses of secondary lead smelters, leading to a general decline in finished product inventories at smelters and a tightening of regional spot supply. Last week, spot discounts for lead narrowed significantly compared to the previous week, potentially providing strong support for lead prices. Additionally, on last Friday, the MIIT stated that it would release a work plan for steady growth in ten key industries, including non-ferrous metals, potentially injecting new momentum into the lead market.
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