SMM May 20 update:
Overnight, LME lead opened high at $1,983/mt, fluctuating downward overall, gradually declining during the session to a low of $1,961/mt, and finally closed at $1,961.5/mt, posting a shaven-head bearish candle, down $19.5/mt or 0.98%.
Overnight, the most-traded SHFE lead 2606 contract opened high at 16,480 yuan/mt, then came under pressure to fluctuate downward after the open, hitting a session low of 16,395 yuan/mt. The decline narrowed slightly toward the close, finishing at 16,410 yuan/mt, posting a shaven-head bearish candle, down 70 yuan/mt or 0.42%.
Overnight, the non-ferrous metals sector was overall in the doldrums, with SHFE lead weakening in tandem with LME lead. China's fundamentals: the pressure from lead ingot social inventory accumulation eased somewhat, and secondary lead enterprises maintained low operating rates, providing some support for lead prices. However, on the other hand, both primary and secondary lead smelters successively lowered scrap battery purchase prices, weakening cost-side support for lead prices, while downstream consumption remained sluggish, putting pressure on lead prices. Overall, bullish and bearish factors are currently intertwined in the lead market, and lead prices are expected to remain in the doldrums in the short term.
