SMM December 17:
The most-traded SHFE lead 2601 contract opened at 16,820 yuan/mt, and fluctuated downward to around 16,690 yuan/mt due to position reductions by bulls, then fluctuated rangebound. It touched a low of 16,680 yuan/mt before closing at 16,735 yuan/mt, down 140 yuan/mt or 0.83%, marking a third consecutive day of decline.
Supply side, environmental protection-related controls were recently implemented in multiple areas of north and east China, restricting the transportation of waste lead-acid batteries and prompting some secondary lead smelters to cut production, further reducing secondary lead ingot output. Meanwhile, spot lead ingot availability from primary lead smelters remained tight, with suppliers generally holding back sales and adopting a wait-and-see stance. Demand side, most battery producers maintained purchasing as needed. Although some companies intended to purchase on dips, the overall sentiment remained cautious. If downstream battery producers' stockpiling willingness remains modest ahead of the New Year holiday, the room for a lead price rebound may be limited.
Data source statement: Data not from public sources are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not as decision-making advice.
