SMM Morning Comment On Lead Market July 25

SHANGHAI, Jul 25 (SMM) – LME lead opened at $2,136/mt on Monday and touched a high of $2,177/mt before closing at $2,165/mt, an increase of 1.43%.
Overnight, the most-traded SHFE lead contract went up to 16210 yuan/mt after opening at 15,975 yuan/mt, and closed at 16170 yuan/mt, up 230 yuan/mt or 1.44%. Trading volume fell 3646 lots to 63698 lots.

On the macro front, the U.S. employment data still showed resilience, and the market continued to strengthen the prospect of the Fed raising interest rates, but the rebound of the U.S. dollar index did not significantly suppress the lead price. Fundamentally, towards the end of July, downstream orders at large-scale lead-acid batteries are gradually improving, and rigid demand purchases are still maintained after the lead price strengthened, and the peak season expectations are gradually being fulfilled. On the supply side, the impact of the maintenance of primary lead enterprises will wane, and the profit of secondary lead is improving, thus the supply of refined lead is expected to increase month-on-month. However, considering the tight supply of raw materials and other factors, some smelters are unable to fully recover from maintenance.