SunSirs: China's Spot Lead Market Fluctuated Mainly Last Week (8.17-8.21)

Last week, the lead market (8.17-8.21) fluctuated and declined. The average price in the Chinese market was RMB 16,227.5/ton at the beginning of the week and RMB 16,052.5/ton at the weekend, representing a weekly decline of 1.08%.

The lead commodity index on August 22 was 97.69, which was the same as on August 21. It was 27.10% lower than the cycle high of 134.01 points (2016-11-29), and 30.90% higher than the lowest point of 74.63 points on March 19, 2015. (Note: Period refers to 2011-09-01 to present).

Last week, LME lead rose and fell back, fluctuating in the range of 1,950-2,025 US dollars/ton. Affected by the weakening of the US dollar, it rose to the highest point since mid-January 2020 at US$2,025/ton, and was later affected by the high LME lead inventory. The price goes down. The Shanghai tin futures followed the trend of LME lead this week and then fell back. The overall trend was weak and the trend was weaker than the external price.

Last week, domestic spot market price fluctuations were limited, with a weekly drop of around 100 yuan/ton, mainly driven by the domestic futures market. The price of lead-acid batteries has risen since August, and the operating rate of enterprises has been relatively high. Spot lead is expected to be boosted by downstream peak season expectations. The recent high price consolidation is the main focus. Most of the transactions are long-term orders, with fewer small orders. The price of downstream batteries has recently increased, and the operating rate is at a high level. However, the peak season of this year is temporarily not as good as in previous years. The digestion of lead inventory is slow, the overall inventory is slightly higher, and the lead price fluctuates at a high level.

According to the price monitoring of the business agency, in the 33rd week of 2020 (8.17-8.21), there are 13 commodities in the non-ferrous sector that have increased month-on-month. The top 3 commodities are neodymium praseodymium (4.22%) and neodymium praseodymium. Oxide (3.71%), copper (3.31%). There were 5 products that dropped from the previous month. The top 3 products were dysprosium metal (-2.95%), dysprosium oxide (-2.14%), and dysprosium-iron alloy (-1.36%). The average increase and decrease this week was 0.92%.

SunSirs predicts the changes in key lead inventories next week. Lead prices are expected to fluctuate at high levels during the peak season.

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