Primary and secondary smelters simultaneously cut production this month, lead ingot inventory rose to a six-month high [Lead Futures Brief Review]

SMM June 30 News:

During the day, the SHFE lead 2608 contract was under pressure overall, opening at 16,134 yuan/mt. After the opening, prices weakened quickly in early trading, and the contract remained in the doldrums throughout the day. In the late session, it dipped to an intraday low of 15,925 yuan/mt and closed at 15,995 yuan/mt, registering a small bearish candlestick, down 235 yuan/mt, or 1.45%. Trading volume continued to expand during the day, with activity picking up significantly in early trading, cooling slightly in the afternoon, and overall volume staying steady. The intraday moving average capped the futures throughout the session, and bulls lacked strong upward momentum. Currently, the primary lead smelting sector is weighed by both tightening ore supply and weakening lead prices. This month, some smelters have already carried out production cuts or halted operations. Secondary lead enterprises are constrained by insufficient supply of scrap battery raw materials, and the number of smelters cutting or halting production continues to rise. The pattern of synchronized weakening in both supply and demand has continued to suppress lead prices. Coupled with the persistent accumulation of social inventory of lead ingots, the current inventory level has reached a new high since June. Looking ahead to the lead price trend in July, the actual recovery of downstream end-use consumption will be a key variable to watch.

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