SMM October 27:
The most-traded SHFE lead 2512 contract opened at 17,550 yuan/mt during the day. After opening, bears increased their positions, causing SHFE lead to fluctuate downward and probe a low of 17,395 yuan/mt. It experienced a slight compensatory rise in the afternoon, finally closing at 17,520 yuan/mt, down 0.43%. A large bearish candlestick with a bald head was recorded, with open interest at 84,395 lots.
Recently, the tight supply situation in the lead market persisted, especially with scarce supply of primary lead delivery brands. October cargoes were sold out in some regions, with November cargoes being pre-sold. This was coupled with current social inventory falling to a low level seen in over a year, supporting lead prices to hold up well. However, it is worth noting that the profit margin for imported lead ingots expanded, with new batches of imported lead being traded. Simultaneously, lead-acid battery enterprises showed signs of production cuts towards month-end, and lead consumption might decrease correspondingly. It is expected that lead prices face the risk of retreating after a rapid rise subsequently.
Data Source Statement: Except for publicly available information, other data are processed and derived by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and do not constitute decision-making advice.
