SMM August 26 News:
The most-traded SHFE lead 2509 contract opened at 16,870 yuan/mt, rising sharply after the opening. It reached a high of 16,970 yuan/mt in the afternoon, then pulled back slightly to close at 16,930 yuan/mt, with a gain of 0.39%, marking four consecutive days of gains. The open interest was 50,846 lots.
On the supply side, due to losses and insufficient scrap supply, more secondary lead smelters in east China and north China have cut production or undergone maintenance. Some primary lead smelters will enter regular autumn maintenance by the end of August. Coupled with tight supplies of raw materials such as lead concentrates, refined lead supply is expected to decline in September. With the SCO summit and military parade approaching, temporary vehicle restrictions are being implemented in some parts of central and north China, extending the transportation cycle for lead ingots from smelters. Downstream demand has shifted to consuming nearby warehouse stocks, leading to a decrease in social inventory of lead ingots. In the short term, macroeconomic support and expectations of a supply decline may keep lead prices holding up well.
Source statement: Apart from publicly available information, other data is derived from public information, market exchanges, and SMM's internal database model, processed by SMM for reference only and not intended as decision-making advice.
