SunSirs: Lead Prices Continued to Decline Last Week, down 4.4% (11.5-11.12)

The lead market (11.12-11.19) continued to decline last week, with a weekly drop of 4.4%.

Lun lead fall from the high level, the mainstream range is between 2123-2218 US dollars / ton. At the beginning of the week, the low LME inventory boosted the trend of LME lead. Later, as the US dollar continued to rise, the metal market was generally under pressure, and LME lead prices were dragged down. The Shanghai lead continued to fall within the week, and the trend continued to be weak last week due to the impact of the broader market.

The domestic spot lead price trend mainly followed the Shanghai lead trend, and it continued to decline last week. Primary lead manufacturers are gradually resuming production, but some manufacturers are still repairing. The resumption of production of primary lead enterprises is good, and the supply side is generally improving. The downstream is currently purchasing on demand, and social inventories are still high. The impact of the power curtailment policy has been neglected. The recent demand of storage companies has recovered better, and the supply and demand is improving, but the overall high inventory is still the main factor restricting the rise of lead prices. In the past month, under the constraints of demand recovery but high inventory Lead prices continue to fluctuate and tend to weaken.

In the 46th week of 2021 (11.15-11.19), there are 7 commodities in the non-ferrous sector that have risen month-on-month in the bulk commodity price list. Among them, there are 2 commodities that have increased by more than 5%, accounting for 9.1% of the number of monitored commodities in this sector; The top 3 commodities are magnesium (11.27%), metallic silicon (5.84%), and tin (1.86%). A total of 11 products fell month-on-month, and the top 3 products that fell were aluminum (-3.28%), lead (-3.22%), and dysprosium-iron alloy (-2.36%). The average increase and decrease last week was 0.13%, and the metal market fell more and rose less last week.

On the whole, the sharp drop in lead prices last week was mainly affected by the sharp increase in LME inventories. The domestic market's supply and demand have not changed much. As prices have fallen, downstream purchases have been driven, and the market has a strong wait-and-see sentiment. The market outlook is dominated by price fluctuations, with limited downward space.

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