Receding Optimism and Growing Supply to Weigh on Lead Prices

SHANGHAI, May 15 (SMM) – Lead prices will be weighed on with bullish mood receding and secondary lead supply on the rise, Shanghai Metals Market believes.

Only one of the 10 industry insiders surveyed by SMM remained bullish toward lead prices, and six of them expected prices to fall after treading water in the past week. The remaining three considered it hard to judge the price trends.

The strengthening bearishness is expected to pressure prices.

On top of that, many secondary lead smelters have resumed production, and those unlicensed ones were willing to cut prices for sales, also boding ill for lead prices.

This occurred at the same time when E-bike battery sector entered an offseason, which is curtailing lead demand. Resultantly, secondary lead supply remains ample even after a few producers were ordered to close again for environmental issues.

SMM data indicate a fall in secondary lead quotes to only 11,650-11,750 yuan per tonne in Shandong and Anhui May 14. Price offers in Guangdong and Fujian dropped to 11,800-11,900 yuan a tonne, with trading muted.

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