According to the monitoring of the commodity market analysis system of Shengyi Society, as of February 21, the price of lead 1 # was 16975 yuan/ton, a decrease of 0.26% from the lead price of 17020 yuan/ton on February 17.

This week’s market analysis

The lead price continued to decline in the early part of this week and rebounded over the weekend.

Native lead

The progress of resuming production of overseas mines has been delayed, and it is expected that their output will not show significant growth in the short term. In China, although mines have reduced production due to seasonal factors, the impact of mine production reduction on the production of primary lead is relatively small due to the fact that the reserve scale of primary lead smelters in this round exceeded the historical normal level in winter. In addition, although smelters in Qinghai and other regions have experienced a slight decline in production due to equipment failures, overall, these unexpected factors have limited impact on the overall supply of primary lead, and it is expected that the production of primary lead will remain relatively stable in the short term.

Regenerated lead

With the resumption of production by recyclers, recycled lead smelters have reported an improvement in the arrival of raw materials, resulting in a decrease in the purchase price of waste batteries. It is expected that as the amount of scrapped batteries gradually recovers, the supporting role of waste battery prices on lead prices will become limited. From the perspective of smelting, according to the production schedule of various enterprises, the resumption of production of recycled lead smelters is increasing, and the supply of recycled lead is expected to maintain a growth trend in the short term.

Demand side

Lead acid battery companies have a strong enthusiasm for resuming production, and it is expected that the operating rate of lead acid batteries will continue to show an increasing trend in the future. This positive demand trend will provide some support for lead prices.

comprehensive analysis

In the short term, the supply and demand of the lead ingot market are strong, and the trend of lead prices is dominated by changes in the supply of recycled lead. The resumption of production of recycled lead is accelerating, and an increase in supply may put pressure on lead prices. It is expected that lead prices will maintain a weak and volatile trend.