Lead Prices Fell in Both Overnight and Prompt Markets, Support for Ex-China Lead Prices Remains [SMM Lead Morning Brief]

SMM May 11:

Last Friday, LME lead opened at $1,974/mt, fluctuated downward during the Asian session to a low of $1,958/mt. As tight supply of lead ingots in the Southeast Asian market persisted, providing strong support for lead prices, it rebounded during the European session, touching a high of $1,979/mt before closing at $1,977.5/mt, down 0.99%.

Last Friday evening, the most-traded SHFE lead 2606 contract opened high at 16,740 yuan/mt. Due to weak consumption in the spot market, lead prices were in the doldrums, hitting a low of 16,665 yuan/mt before closing at 16,705 yuan/mt, down 0.03%, forming a small bearish candlestick with no upper or lower shadows.

Consumption side, the lead-acid battery market remained in the off-season, but with the holiday factor removed, downstream enterprises will resume purchasing as needed. Supply side, secondary lead enterprises cut production, and regional supply of lead ingots was tight, while primary lead production was stable to slightly higher with relatively ample supply. This week, attention should be paid to the impact of delivery on circulating supplies. Lead prices are expected to have limited discounts (against SMM #1 lead).

Data source disclaimer: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.