Overnight, lead futures maintained a fluctuating trend, with SHFE lead forming a small bearish candlestick with a shaven head [SMM Lead Morning News]

SMM December 3:

Overnight, LME lead opened higher at $1,999/mt. During the Asian session, it fluctuated upward slightly above the daily average line before briefly pulling back. Entering the European session, due to increased positions by bulls, LME lead fluctuated considerably, reaching a high of $2,010/mt. Towards the end of the session, it continued to weaken, falling to a low of $1,995/mt, and finally closed at $1,998.5/mt, up $5/mt, a gain of 0.25%. It recorded a small bearish candlestick.

Overnight, the most-traded SHFE lead 2601 contract opened at 17,240 yuan/mt. At the beginning of the session, due to reduced positions by bulls, SHFE lead fell sharply to 17,120 yuan/mt, then found support at the 10-day average line. SHFE lead saw a slight compensatory rise and moved sideways towards the end of the session, finally closing at 17,135 yuan/mt, down 50 yuan/mt, a decline of 0.44%. It formed a small bearish candlestick with a bald head.

Raw material side, as the supply gap for lead concentrates persists, TCs negotiations remain deadlocked. Meanwhile, in the waste lead-acid battery market, recycling volume has declined, leading to signs of price rebound. Currently, cost support is strong. Supply side, primary lead and secondary lead smelters still face maintenance and shutdowns, and December production is expected to decline. Demand side, downstream battery producers have increased their purchasing enthusiasm for lead ingots due to fears of future price rises. At this stage, there are many positive factors for lead prices, but attention should still be paid to the appreciation of the yuan and the potential suppression of price gains from overseas lead ingots flowing into the domestic market if the import window opens after lead prices rebound.

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