SMM August 8:
Overnight, LME lead opened at $1,998/mt, fluctuating rangebound in the Asian session, with a low of $1,997.5/mt. Entering the European session, LME lead fluctuated upward, reaching a high of $2,011/mt, and closed at $2,007/mt, up 0.5%, recording a three-day winning streak.
Overnight, the most-traded SHFE lead 2509 contract opened at 16,875 yuan/mt, touched a low of 16,850 yuan/mt early in the session, then fluctuated upward, reaching a high of 16,910 yuan/mt, and closed at 16,885 yuan/mt, up 0.15%.
This week, production at primary lead smelters gradually resumed, while in Anhui province, environmental protection inspections were underway, leading to production constraints at some secondary lead enterprises and widening regional supply differences for lead ingots. During this period, the discount for cargoes self-picked up from production site at primary lead smelters narrowed, prompting some downstream enterprises to opt for nearby procurement, which led to a decline in social warehouses for lead ingots. Recently, lead prices have fluctuated upward, with SHFE lead once approaching the 17,000 yuan/mt threshold. Downstream enterprises, wary of high prices, have adopted a wait-and-see attitude, leading to a decline in trading activity in the spot market. Next week, as the SHFE lead 2508 contract approaches delivery, there may still be some lead ingot transfers before delivery. It is expected that the subsequent decline in social inventory for lead ingots may slow down, and attention should be paid to the impact of inventory buildup on lead price trends.
Data Source Statement: Except for publicly available information, all other data are based on publicly available information, market exchanges, and rely on SMM's internal database models, processed by SMM for reference only and do not constitute decision-making advice.
