SHFE lead steadily recovered during the day, with strong support for lead prices [SHFE lead Brief Review]

SMM December 3 News:

The most-traded SHFE lead 2601 contract opened at 17,180 yuan/mt today, edged up slightly along the daily average line in the morning, and rose again after a brief sideways consolidation at noon, hitting a high of 17,240 yuan/mt, and finally closed at 17,210 yuan/mt, up 30 yuan/mt or 0.17%, marking the second consecutive day of gains.

Recently, primary lead and secondary lead smelters in many regions across the country were under maintenance or shutdown this week, and both primary lead and secondary lead production were expected to decline this month, indicating a contraction in supply. The previous decline in lead prices led to a drop in the purchase price of waste lead-acid batteries, and as the price has not yet rebounded, suppliers of waste lead-acid batteries were reluctant to sell their inventories at low prices, showing a "reluctance to sell" mentality. The actual volume of waste lead-acid batteries received by recycling enterprises in some regions such as east, central, and north China decreased significantly, and the spot scrap battery supply in the market was relatively tight. This may subsequently affect the raw material supply for secondary lead. Moreover, the operating rate of lead-acid battery plants increased recently. Under the dual effects of constrained supply and released demand, lead prices were expected to gain support and the trend was likely to warm up.

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