SMM September 1:
Last Friday, LME lead opened at $1,986/mt, fluctuating around the daily moving average during Asian trading hours. Entering European trading hours, LME lead initially declined then rebounded, hitting a low of $1,982.5/mt. As LME lead inventory declined for several consecutive days, bears reduced positions, pushing LME lead to rebound and touch a high of $1,998/mt, finally closing at $1,997/mt, up 0.45%.
Last Friday night, the most-traded SHFE lead 2510 contract opened at 16,875 yuan/mt, reaching an early high of 16,880 yuan/mt. Due to increased bearish positions, SHFE lead plunged to a low of 16,780 yuan/mt before rebounding slightly in late trading, finally closing at 16,870 yuan/mt, up 0.12%.
Primary lead side, transportation restrictions in North China are expected to be lifted this week, with spot market supply anticipated to increase. Spot transactions are expected to maintain discounts. Secondary lead side, the impact of smelter maintenance intensified, coupled with persistent losses, smelters continued to refuse to budge on prices. Some regions may still experience price inversion (secondary lead higher than primary lead). Consumption side, demand for lead-acid batteries remained sluggish, with producers adopting a produce-based-on-sales approach and purchasing raw materials only as needed, providing limited support for lead prices.
Data source statement: Except for publicly available information, other data are derived from public information, market exchanges, and SMM's internal database model, processed by SMM for reference only and not constituting decision-making advice.
