SunSirs: China’s Spot Lead Market Rose First and then Fell Last Week (May.25-29)

1. Price Trend

Chinas lead market (5.25-5.29) rose first and then fell. The average domestic market price was 14,418.75 yuan/ton at the beginning of the week and 14,381.25 yuan/ton at the weekend, a weekly decrease of 0.26%.

The lead commodity index on May 29 was 87.52, a decrease of 0.23 points from May 28, a decrease of 34.69% from the highest point in the cycle of 134.01 (2016-11-29), and an increase of 17.27% from the lowest point of 74.63 on March 19, 2015. (Note: Period refers to 2011-09-01 to present).

2. Market trend analysis

In the futures market, the lead in the week is weak. Affected by foreign events, this week’s trend continues to decline, with a weekly decline of about 1%. Shanghai lead entered the downtrend channel after rising at the beginning of the week, and finally closed at 14,165 yuan/ton on Friday, with a weekly decline of about 320 yuan/ton.

Affected by Shanghai lead, the domestic spot market maintained stable prices on Monday and continued to decline after the price increase on Tuesday. As of Friday, the spot lead market price was around RMB 14,200-14,350/ton. The weekly decline was only 0.26%. In the off-season, the current spot market has a high inventory of lead ingots, and the market trading atmosphere is slightly worse. In addition, this week, imported lead has entered the market, and the market has more sources. In terms of recycled lead, the supply of recycled lead is better as the construction load of manufacturers in Jiangxi and Yunnan increases.

According to SunSirs price monitoring, in the 21st week of 2020 (5.25-5.29), the commodity price rises and falls in the colored plate of the chain, a total of 7 kinds of products, the top 3 commodities were silver (1.70%) and aluminum (1.56%) , Praseodymium neodymium oxide (0.93%). There are 5 kinds of commodities that fell sequentially, and the top three products that fell were zinc (-0.65%), lead (-0.26%), and nickel (-0.21%).

This week’s average increase or decrease was 0.22%.SunSirs predicts that the favorable policy impact brought by the two sessions next week will further affect the metal market. The construction of various domestic industries will gradually be on track. The overall market environment is better. The spot lead market has sufficient supply in the near future and some low-cost sources. It appears that in the short term, the lead price is mainly volatile, and some domestic lead ingot manufacturers have maintenance plans in June. The reduction in supply will have a slight support for the market price.

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