Slow Raw Material Circulation Persists, SHFE Lead to Hover at Highs [Lead Futures Brief Review]

SMM December 25:

The most-traded SHFE lead 2602 contract opened at 17,270 yuan/mt today. It fluctuated upward in early trading, touched a high of 17,345 yuan/mt in the afternoon session, then pulled back slightly and finally closed at 17,315 yuan/mt, up 180 yuan/mt or 1.05%, marking a three-day winning streak.

Recently, the lead industry chain has continued to show weak supply and demand. Supply side, primary lead smelters saw an increase in cargoes self-picked up from production site, but trading in the spot market remained sluggish, with limited actual outflow. Meanwhile, secondary lead enterprises in many regions maintained production cuts due to poor scrap battery arrivals and ongoing environmental protection-related controls, keeping spot lead ingot supply tight. Demand side, downstream battery enterprises gradually entered the year-end account closing period, with low purchase willingness and overall weak consumption. Overall, with both supply and demand subdued, lead prices are expected to continue a fluctuating trend at highs in the short term. Subsequent focus should be on the recovery and circulation of scrap battery supply in the secondary lead raw material sector.

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