According to the monitoring of the commodity market analysis system of Shengyi Society, as of March 21, the price of lead 1 # was 17385 yuan/ton, a decrease of 0.49% from the lead price of 17470 yuan/ton on March 17.

This week’s market analysis

This week, lead prices have been running at a high level, with a slight downward adjustment within the range.

Raw material end

Domestic mines have entered a seasonal maintenance period, resulting in a decline in production and a relatively tight supply of mineral resources. Although the maintenance of the primary lead refinery has ended and imported crude lead has arrived at the port, the situation of tight mineral resources has not been fundamentally alleviated, and there is no obvious sign of a decline in processing fees (TC). In terms of waste batteries, recycled lead refineries continue to operate at a high level, and the demand for waste batteries remains strong. Due to the bullish market sentiment, holders of goods are reluctant to sell, resulting in a tight supply of raw materials to refineries, and prices showing a trend of easy rise but difficult fall. The supporting effect of raw materials on lead prices remains strong.

Supply and demand side

The primary lead refinery continues to focus on restoring and increasing production, with slight fluctuations in operating rates; In the field of recycled lead, on the one hand, the supply of waste batteries is slightly tight, and on the other hand, many northern regions have issued heavy pollution weather warnings one after another this week. Environmental protection production restrictions have been implemented in some areas, and recycled lead refineries have actively responded by reducing production and stopping operations, resulting in a decline in operating rates. With the lifting of environmental warnings this week, it is expected that the operating rate will steadily increase, but the specific recovery situation still needs to be closely monitored based on the arrival of raw materials.

The terminal demand is average, and the traditional off-season has decreased. Dealers are more cautious in purchasing, especially electric bicycle battery dealers who actively maintain low inventory levels.

comprehensive analysis

The cost side is firmly supported, and lead prices continue to hover at high levels. However, spot market trading is slightly sluggish, and procurement demand is mostly concentrated in recycled lead. The strong willingness of native lead holders to deliver has led to a decrease in the supply of goods in the market. It is expected that lead prices will remain high and fluctuate in the short term.