News summary

China's lead ore imports hit a new high in April, reaching 90933 tons. Inventory of lead ingots decreased and supply tightened; inventory of zinc ingots decreased, and downstream procurement was cautious. In the off-season of demand for lead batteries, raw material inventories in recycled lead refineries are low, and the scope of production reduction is expanding. Consumption in the downstream zinc sector needs to be boosted, and high zinc prices suppress buying sentiment.

Newsletter text

[Lead ore imports set a new four-month record, and domestic demand is booming] Data showed that China's imports of lead ore and concentrate soared to 90933 tons in April, the highest level since December last year. Currently, domestic lead ore supply is tightening, and the market urgently needs to import more lead ore to meet domestic demand.

[Inventory of lead ingots has dropped significantly, and market supply has tightened] The latest survey data shows that as of May 23, the total inventory of lead ingots in five key regions has dropped to 5.5%yojucasinonodepositbonuscodes20228,400 tons, down 20,100 tons and 14,900 tons from May 16 and May 20 respectively, reflecting the tight market supply situation.

[Feinan Resources reveals industrial technology, focuses on non-ferrous metal recycling] Feinan Resources stated on the investor interactive platform that the company focuses on non-ferrous metal hazardous waste treatment and recycling of renewable resources, and has developed a series of efficient production processes and technologies, including electrolytic copper production, copper hazardous solid waste ingredients and multi-metal recycling technology.

[Lead ingot prices fell slightly, interpretation of market dynamics] On the previous trading day, the average price of SMM1 #lead ingot fell compared with the previous trading dayyojucasinonodepositbonuscodes2022By 0.41%, the main Shanghai lead contract fell by 1.84%.

[Supply and demand in the lead market are tight, and the price trend is eye-catching] The domestic lead market is currently experiencing a situation of tight supply and demand. Primary lead refineries continue to be affected by raw material shortages, and some have to reduce production or suspend production for maintenance. At the same time, demand for lead batteries entered the off-season in May, and recycled lead refineries also entered the maintenance period, further exacerbating the shortage of raw material stocks. Although the arrival of imported lead ore in Hong Kong is expected to ease domestic supply constraints, the market remains highly concerned about the import situation and the arrival of raw materials.

[Zinc ingot prices continue to fall, and the market supply side tightens] On the previous trading day, the average price of #1 zinc ingot fell by 1.35% compared with the previous trading day, and the main Shanghai zinc contract fell by 2.31%. Regional zinc ingot premium prices have increased to varying degrees.

[The zinc market is facing dual challenges of supply and consumption, and the price trend is complex] Although some refineries are still undergoing maintenance and zinc supply is in periodic tension, zinc prices remain at a high level. After the holiday, downstream companies started to pick up, but due to high zinc prices, downstream procurement strategies shifted to reducing inventory risks. On the other hand, although the country has taken positive measures in real estate and infrastructure policies, and the launch of infrastructure projects is expected to increase zinc ingot consumption, the consumer market has not yet improved significantly. High zinc prices have a significant suppressing effect on downstream purchasing sentiment, and inventory accumulation risks cannot be ignored, or lead to a high correction in zinc prices.