Intraday SHFE lead fluctuated upward again after a brief correction [Futures Lead Brief Review]

SMM December 2:

The most-traded SHFE lead 2601 contract opened at 17,145 yuan/mt today. After fluctuating along the daily average line in early trading, it experienced a slight correction to 17,110 yuan/mt. Subsequently, due to increased positions by bulls, SHFE lead fluctuated upward and finally closed at 17,210 yuan/mt, up 125 yuan/mt, or 0.73%, forming a small bullish candlestick.

This week, primary lead and secondary lead smelters saw both maintenance and production resumptions, but overall production showed a downward trend. Downstream lead-acid battery plants saw improved production and intended to build inventory at low prices, potentially increasing their demand for lead ingots in the future, thereby boosting smelters' production enthusiasm. Since late November, lead prices continued to fall, waste lead-acid battery recycling enterprises were bearish on the market outlook, most of them "sold off" inventory to reduce risks, and their in-factory inventory remained at low levels. Meanwhile, holders of spot cargo (stores) were reluctant to sell scrap batteries due to the psychology of "selling when prices rise, not when they fall," leading to a WoW decrease in recycling enterprises' purchase volume. As lead prices stopped falling and stabilized, waste lead-acid battery holders in the market may wait to sell at high prices. In the short term, the recycling volume of waste lead-acid batteries in the market will remain low, a phenomenon that may further promote the warming of lead prices.

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