According to the monitoring of the commodity market analysis system of Shengyi Society, as of December 31, the price of lead 1 # was 16810 yuan/ton, a decrease of 1.70% from the lead price of 17100 yuan/ton on December 29.

This week’s market analysis

After experiencing a sharp decline last Friday, lead prices continued to maintain a weak trend this week. Although some downstream enterprises are willing to purchase on demand at lower prices, the supply of refined lead is still tight in some areas. The inventory of smelters and the social inventory of lead ingots have continued to decline.

Fundamentals

This week, the operational focus of Shanghai lead continues to show a downward trend. In terms of cargo holders, most choose to ship at a higher price, and their quoted premiums have generally increased compared to last Friday. However, the supply of goods from refineries is not sufficient. Some refineries choose not to ship, while others insist on a high price shipping strategy. It is worth noting that in response to the year-end inventory clearance demand, a few refineries have taken measures to reduce their quoted premiums.

Demand side

Downstream enterprises are adopting a wait-and-see attitude and cautious in their procurement behavior in the current market environment. As a result, the transaction volume in the individual order market is relatively light.

Inventory situation

As of December 30th, the total social inventory of lead ingots reached 53100 tons, a decrease of 0.31 tons from December 23rd; Less than 700 tons compared to December 26th.

comprehensive analysis

After the New Year’s Day holiday, we still need to pay attention to the consumption expectations of downstream enterprises resuming normal operations after the year-end account closure and inventory factors are lifted, as well as pre holiday distributors hoarding and ordering goods. The lead market may once again see a double increase in supply and demand.