SMM August 7:
Overnight, LME lead opened at $1,976.5/mt. During the Asian session, it briefly touched a low of $1,975.5/mt before fluctuating upward. Driven by the remarks of Fed officials that boosted expectations for an interest rate cut, the US dollar index fell. Entering the European session, LME lead reached a high of $2,002.5/mt and finally closed at $1,997/mt, up 1.09%.
Overnight, the most-traded SHFE lead 2509 contract opened at 16,880 yuan/mt. In the early session, it briefly touched a high of 16,905 yuan/mt before fluctuating downward to a low of 16,825 yuan/mt. It finally closed at 16,860 yuan/mt, up 0.18%.
Supply side, observe the production dynamics of primary lead smelters in Central China. Additionally, the sewage inspection work in Anhui Province is still ongoing, and the impact on local secondary lead production remains to be seen. Demand side, the tariff dispute has escalated, leading to a decrease in new orders for battery exports in August. Domestic battery producers are facing more high-temperature holidays, and it is expected that there will be limited room for production increases in August. Meanwhile, attention should be paid to the driving force of changes in domestic e-bike consumption on lead-acid battery demand. Overall, lead prices have fluctuated upward recently, but there is significant upward pressure.
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. These data are for reference only and do not constitute decision-making advice.
