End-user actual consumption improves marginally Lead prices remain in the doldrums [Brief Commentary on Lead Futures]

SMM Aug 20 Report:

The most-traded SHFE lead 2509 contract opened at 16,720 yuan/mt, initially maintaining a downward trend, and slightly rebounded in the afternoon, finally closing at 16,725 yuan/mt, with a decline of 0.59%, and an open interest of 46,776 lots.

Yesterday, overseas lead inventory surged by over 20,000 mt, leading to a general weakening of domestic and overseas lead prices. Currently, the domestic lead-acid battery market is in its traditional peak season, but actual terminal consumption has seen limited improvement. Additionally, changes in tariff policies have led to a decline in battery exports, providing little support for lead consumption. Meanwhile, the issue of losses in secondary lead production remains unresolved, with many secondary lead producers operating at reduced capacity or shutting down. The price of secondary lead continues to be lower than that of primary lead. Continued attention should be paid to the cost of secondary lead and the downstream purchasing trends for their supportive role on lead prices.

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