US Government Shutdown Expected to End Boosts Optimistic Sentiment & LME Lead Destocking LME Lead Closed Up 1.21% Overnight [SMM Lead Morning News]

SMM November 13:

Overnight, LME lead opened at $2,067.5/mt, touched a low of $2,062.5/mt during the Asian session and fluctuated upward. Entering the European session, boosted by optimism over a potential end to the US government shutdown and LME lead destocking, LME lead maintained a firm upward trend, hitting a high of $2,097/mt, and finally closed at $2,093/mt, up $25/mt or 1.21%, marking a five-day winning streak.

Overnight, the most-traded SHFE lead 2512 contract opened at 17,605 yuan/mt, touched a low of 17,575 yuan/mt early in the session, then fluctuated upward due to bears reducing positions, reaching a high of 17,730 yuan/mt, and finally closed at 17,715 yuan/mt, up 140 yuan/mt or 0.80%, recording a two-day winning streak, but under pressure at the upper Bollinger Band.

This week is the week before the SHFE lead delivery, invisible inventory will turn into visible inventory. Secondary lead smelters are ramping up production after resuming operations, spot supply gradually increased; additionally, imported lead traded last month is arriving at ports successively, leading to a gradual loosening of lead ingot supply in the short term. Consumption for two-wheeled e-bike batteries entered the off-season, downstream operating rates declined, currently the SMM lead-acid battery weekly operating rate fluctuates below 70%. Downstream demand gradually weakened, recently lead-acid battery producers showed low purchase willingness for spot lead ingot orders, only maintaining rigid demand restocking. Overall, lead prices face multiple bearish factors, be cautious of the drag from fundamentals on lead prices.

Data source statement: Except for publicly available information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and do not constitute decision-making advice.