Lead ingot market slightly upward (6.9-6.16)

This week’s lead market (6.9-6.16) fluctuated upwards, with the average price in the domestic market at 15055 yuan/ton over the weekend and 15265 yuan/ton over the weekend, up 1.39%.

The K-bar chart of commodity prices uses the concept of a price trend K-line to reflect weekly or monthly price fluctuations in the form of a bar chart. Investors can buy and sell investments based on the changes in the K-bar chart. Red indicates an increase; Green indicates a decline; The height of the K-bar represents the range of fluctuations. Since the market entered September, the expectations of downstream battery companies have increased during the peak season, driving the price of primary lead to rise. After the peak season ended, prices continued to weaken, and the market trend was somewhat volatile.

In terms of the futures market, the U.S. Dollar Index plunged this week, and Lun Lead went up. The price of lead was boosted and kept up. The Spot market mostly followed the fluctuation of Shanghai Lead, and the price was the main player this week. In terms of supply and demand, supply has been slightly tight this week, and primary lead manufacturers have recently started maintenance, resulting in an overall decline in operating rates. Due to losses during the off-season, recycled lead companies have actively limited production and reduced operating rates, leading to a tightening of lead ingot supply this week compared to the previous period, boosting market sentiment. In terms of demand, the downstream consumer end is still in the off-season, and battery companies have production reduction plans. The procurement of raw materials and power is insufficient, and most of them maintain just in demand procurement. In terms of waste batteries, most of the quotations in Henan, Shandong, and other places have followed the rise of lead prices, and discussions in the high market are limited, with only sporadic transactions. The downstream still lacks the support of actual demand, offsetting the good from the supply side. The Spot market as a whole shows a pattern of weak supply and demand. In the future, the Business Society predicts that the main trend will remain weak and volatile in the short term, with limited market volatility in the off-season. We will pay attention to the impact of macro level news on the market in the future.

London Metal Exchange (LME) lead inventory of 36800 tons will be temporarily stable on June 18, 2023 (unit: ton)

On June 18th, the base metal index stood at 1208 points, unchanged from yesterday, a decrease of 25.25% from the cycle’s highest point of 1616 points (2022-03-09), and an increase of 88.16% from the lowest point of 642 points on November 24, 2015. (Note: The cycle refers to the period from December 1st, 2011 to the present).

According to the price monitoring of the Business Society, there were a total of 9 commodities in the non-ferrous sector that rose month on month on the list of commodity prices in the 24th week of 2023 (6.12-6.16), with nickel (4.71%), tin (4.05%), and cobalt (3.38%) ranking among the top 3 commodities. There are a total of 8 products that have decreased compared to the previous month, with the top 3 products falling being metal silicon (-2.99%), magnesium (-2.62%), and silver (-1.70%). This week’s average increase or decrease was 0.56%.