Bullish factors dominated the market, and SHFE lead recorded a doji during the day. [Futures Lead Brief Review]

SMM December 8:

The most-traded SHFE lead 2601 contract opened at 17,320 yuan/mt, fluctuated rangebound initially before edging down slightly, fluctuated upward in the afternoon to 17,369 yuan/mt then fell again to fluctuate above the daily average line, and finally closed at 17,340 yuan/mt, up 40 yuan/mt or 0.23%. It recorded a doji.

As the retirement of lead-acid batteries for second-round EVs entered the off-season in winter, the volume of waste lead-acid batteries available for recycling in the market decreased, and the arrival of raw materials at secondary lead smelters dropped MoM from the previous month. However, due to moderate raw material inventory, some secondary lead smelters limited the extent of price increases for raw materials. Coupled with domestic social inventory falling to a 15-month low, lead ingot supply regionally tightened. With downstream battery plants showing good purchasing willingness toward the year-end, undersupply may emerge in the market. It is expected that in the short term, lead ingot raw material costs and battery plants' purchasing willingness will jointly support lead prices to hold up well.

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