Futures:
Overnight, LME lead opened at $1,953/mt. During the Asian session, LME lead fluctuated upward, touching a high of $1,963/mt. Entering the European session, LME lead moved sideways within $1,955.5-1,961.5/mt, then shifted to fluctuate downward, eventually closing at a low of $1,945/mt, down 0.33%.
Overnight, the most-traded SHFE lead 2606 contract opened lower with a gap at 16,710 yuan/mt. Prices briefly dipped before rebounding slightly in the early session, but encountered resistance above. Subsequently, the overall trend shifted to fluctuate downward, probing a low of 16,645 yuan/mt near the session end, eventually closing at 16,650 yuan/mt, down 95 yuan/mt or 0.57%. Open interest stood at 63,800 lots, down 1,254 lots from the previous trading day.
Macro front:
The US Fed kept interest rates unchanged as expected, and Powell will remain as governor. Warsh's Fed Chairman nomination passed a Senate committee vote. Trump: now is a good time to cut interest rates; Powell stays at the Fed because no one else wants him. Trump: believes the Russia-Ukraine and Iran conflicts will end at roughly the same time; negotiations with Iran are being conducted by phone, very conveniently. Iran stated that if the US continues to seize ships, it will respond with "unprecedented military action." Putin proposed a "Victory Day" temporary ceasefire with Ukraine and put forward suggestions on Iran's nuclear program; Trump suggested a temporary ceasefire in Ukraine. World Gold Council: global central banks increased gold holdings at the fastest pace in over a year in Q1. Liu Haoling was appointed as CSRC vice chairman. China discovered 13 new 100-million-mt oil fields and 26 new 100-billion-m³ gas fields.
Spot fundamentals:
Yesterday, SHFE lead maintained narrow-range fluctuations. Ahead of the holiday, suppliers actively made shipments, but warrant quotations in Jiangsu, Zhejiang, Shanghai remained scarce, with cargoes self-picked up from production site of primary lead smelters as the main source. Some quotations were lowered from the previous day, with mainstream production areas quoted at premiums of -20~+30 yuan/mt against SMM #1 lead average price on an ex-factory basis, while a few regions maintained quotations at premiums of +100 yuan/mt. Secondary lead side, regional tight supply persisted. Secondary lead smelters in North China, Southwest China and other regions made shipments following the market. Secondary refined lead was quoted at premiums of -50~+50 yuan/mt against SMM #1 lead average price on an ex-factory basis. Downstream enterprises successively went on holiday, procurement demand weakened notably, inquiries were also scarce, and spot market transactions were sluggish.
Inventory: As of April 29, LME lead inventory decreased by 500 mt to 268,700 mt. As of April 27, SMM lead ingot social inventory saw slight destocking.
Lead price forecast for today:
Consumption side, as the Labour Day holiday approached, battery factories' periodic restocking largely concluded last week. Downstream just-in-time procurement follow-through was weak, and overall demand remained subdued. Supply side, constrained by tight raw material inventory, some secondary lead smelters adopted production cuts or halted operations, and spot cargo availability in the market continued to tighten; meanwhile, lead ingot destocking outside China continued, and China's primary lead social inventory also pulled back slightly. Currently, the lead market presents a weak supply-demand pattern, and lead prices are highly likely to maintain fluctuating trend in the short term.
![Holiday Approaching, Demand Mediocre, Lead Prices Under Overall Pressure [SMM Lead Morning Brief]](https://imgqn.smm.cn/usercenter/rDPju20251217171722.jpg)
![Simultaneous Lead Ingot Destocking in and outside China Supported Intraday Lead Prices to Edge Up [Lead Futures Brief]](https://imgqn.smm.cn/usercenter/LCtEk20251217171721.jpeg)
