Price trend

According to the monitoring of SunSirs commodity market analysis system: As of August 29, the price of 1# lead was 16,780 RMB/ton, a slight decrease of 0.15% from the lead price of 16,805 RMB/ton on August 25.

Analysis review

At the beginning of the week, market prices touched a high, driven primarily by two positive factors: growing market expectations of a future supply reduction, coupled with numerous bullish signals from the macroeconomic environment, which together pushed prices upward. By mid-week, market prices had shifted into a narrow range, dipping to a low point. This was primarily due to continued market concerns about supply-side uncertainties and cautious demand, which lacked further upward momentum.

The Shanghai lead market saw periodic fluctuations last week. In the first half of the week, prices rebounded, driven by a favorable macroeconomic environment and expected reductions in supply. By midweek, lead prices had surged, but stable downstream consumer demand and a lack of significant increases in downstream companies' purchasing and stockpiling efforts weakened upward momentum, leading to a partial reversal of some of the previous gains.

On the Supply Side

Primary lead smelters saw a significant increase in maintenance and shutdowns due to periodic equipment maintenance and environmental protection production restrictions at some companies. Meanwhile, secondary lead companies were facing a dual constraint: a tight supply of used batteries as their raw material and shrinking profit margins. Overall operating levels continued to decline, and spot market supply is expected to further decrease, potentially leading to a continued tight supply-demand situation.

On the demand side

Downstream battery companies were experiencing a slow depletion of their lead ingot inventory. Therefore, overall lead ingot procurement is expected to remain based on rigid demand. Some companies primarily accept orders based on long-term contracts, and there is still a tendency to lower prices when purchasing lead ingots.

Future outlook:

As of August 29, under the market environment, the fundamentals of the lead industry had not yet fully improved, mainly due to the slow recovery process on the consumer side. However, given the short-term fluctuations in market sentiment and changes in capital flows, there may be room for a rebound in lead prices.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.