Supply Tightening Supports Lead Prices, SHFE Lead Records a Doji [Lead Futures Brief]

SMM December 11:

The most-traded SHFE lead 2601 contract opened at 17,115 yuan/mt today. After a slight correction in early trading, it rose to 17,220 yuan/mt, then dropped back slightly in the afternoon and fluctuated rangebound, finally closing at 17,155 yuan/mt, up 40 yuan/mt, or 0.23%. A doji was recorded.

Maintenance-related production halts at primary lead smelters in many regions since early December have not yet resumed. Meanwhile, in the secondary lead market, suppliers of raw materials (waste lead-acid batteries) show strong sentiment to hold goods awaiting price increases and are unwilling to sell at low prices, causing raw material shortages at many secondary lead smelters. Production cuts or halts are expected, which is anticipated to prompt lead prices to stop falling and stabilize in the short term.

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