Regional Supply of the Lead Market Became Tighter

The regional supply of the lead market became tighter last week due to unexpected maintenance at one large-scale secondary lead smelter.

In the meantime, prices of secondary refined lead topped those of primary lead in some regions, which weakened the impact of the traditional off-season of lead consumption and the expected accumulation of inventory.

Spot supply is expected to remain tight this week due to the delivery of the SHFE 2303 lead contract, which may provide support for lead prices. Should the expectations of stock accumulation not materialise after delivery, lead prices may stop falling and rally.