SunSirs: Macro Boosted, and Lead Prices Was Up

Price trend

This week's lead market (8.28-9.4) fluctuated upwards, with the average price in the domestic market at 16,175 RMB/ton at the beginning of last week and 16,515 RMB/ton at the beginning of this week, up 2.10%.

From the weekly Lead K-bar chart of SunSirs, it can be seen that the market trend had been relatively strong recently, with the lead ingot market rising for 8 consecutive weeks.

Analysis review

In terms of the futures market, the recent macro trend was good, with the overall domestic and international environment warming, inflation in the United States falling, expectations for interest rate hikes lowered, and the external market showing a good trend. The domestic market continued to release heavyweight positive news, with economic expectations improving and overall macroeconomic performance improving, driving the metal market up. Shanghai lead fluctuated and rose, with Shanghai lead leading the way up 2.3% on Thursday night, hitting a new high of 16,810 RMB/ton in about four years. On Friday morning, Shanghai lead continued its overnight rise and opened higher. As of the close of the 1st, the main 2310 contract of Shanghai lead rose 4.47%, leading the domestic metal market to a four-year high.

In terms of supply and demand, domestic and foreign mining supply was still tight, and primary lead manufacturers had recently resumed production, with supply slightly recovering. Under the dual impact of tight supply of recycled lead raw materials and high raw material prices, prices had slightly increased. In terms of demand, the downstream peak season performance did not meet expectations. Recently, lead prices rose, cost pressure increased, and the overall operating rate had slightly decreased.

Market outlook

Overall, the lead ingot market was relatively weak in recent times due to fundamental factors, mainly following macro fluctuations. The impact of capital games on the market far exceeded the supply and demand side, and it is expected that the market trend will be volatile and weaker in the short term. In the future, the focus should be on the recent macro and fund performance.

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