Lead prices took a hit Friday,closing at $1,950 per metric ton on the London Metal Exchange (LME),down 1.32%. Week was rocky . Peace talks between U.S. and Iran stalled,shaking market confidence. LME lead opened at $1,979.5/mt,slid all day,erasing last week's gains.
During Dragon Boat Festival in China,Shanghai Futures Exchange (SHFE) was shut, but trading resumed today. Complex macroeconomic factors still play havoc with markets. Investors more risk-averse. Saturday,Iran's military said Strait of Hormuz closed over perceived betrayals . But U.S. military saw no closure. Trump's warning — U.S. might control strait,impose transit fees if no deal reached. Military action against Iran threatened if it continues in Lebanon.
Lead spot market quiet. SHFE lead lacked momentum. Few tradable cargoes in Jiangsu,Zhejiang,Shanghai. Suppliers firm on prices. Primary lead smelters offered EXW cargoes at discounts of 30 yuan to premiums of 80 yuan per metric ton against SMM #1 lead average price. Fewer high-premium offers around. Secondary lead smelters adjusted prices, quoting secondary refined lead at discounts of 50 to 0 yuan per metric ton against SMM #1 lead.
With Dragon Boat Festival near,most downstream enterprises finished pre-holiday stockpiling . Holiday closures limited just-in-time procurement. Inquiries few,spot market sluggish. LME lead inventory at 301,950 metric tons,down 1,375 metric tons from previous day . SHFE lead ingot inventory unchanged at 65,185 metric tons.
Looking ahead,macroeconomic factors remain tangled. Risk-averse sentiment strong in overseas markets. More maintenance at primary,secondary lead enterprises in China could tighten supply support prices. But as downstream enterprises restart post-holiday,demand might rise slightly. Yet,half-year inventory checks by big companies could halt lead ingot buys. Price support limited...
Data from SMM,based on public info,market talks. Not advice for decision-making.
