SMM, July 24:
The most-traded SHFE lead 2609 contract opened at 15,775 yuan/mt, then consolidated slightly, edging down to 15,680 yuan/mt, before edging up slightly towards the close to finally settle at 15,725 yuan/mt, down 1.13%, recording a small bearish candlestick without an upper shadow.
Downstream battery consumption remains mediocre. Hot weather continues to drag on operating rates, and end-use demand is having difficulty recovering significantly. Compounding this, enterprises are on holiday and conducting month-end inventory checks, resulting in weak procurement interest for lead ingots. On the supply side, primary lead smelter inventories keep accumulating. Although secondary lead smelters are constrained by raw materials and losses, keeping operating rates low, this cannot offset the weakness in consumption. Bullish and bearish factors are intertwined, and market participants continue to monitor the impact of smelter maintenance plans and crude lead import flows on lead prices.
Data source statement: All data other than publicly available information are processed and derived by SMM based on public information, market communication, and SMM's internal database models, for reference only and do not constitute investment advice.
