Lead Price Started to Decline in Late July 2024

In late July 2024, the domestic lead market experienced a price decline. It's 17475 RMB each ton on 20th, August, 2024. This shift was the result of various supply and demand factors coming into play.

Supply Side: Replenishment and Resumption

Firstly, the domestic lead market's supply situation improved. The earlier price increase, driven by tight supply, began to ease. The arrival of imported lead ore, crude lead, and refined lead provided fresh resources to the market. Additionally, the resumption of production at recycled lead smelting plants increased overall supply. These factors collectively led to a decline in lead prices.

Demand Side: Seasonal Slowdown and Cautious Purchasing

On the demand side, as summer arrived, the lead-acid battery industry entered its traditional off-season. Companies reduced their production rates, and lead ingot purchases became more cautious, focusing mainly on immediate needs. This decrease in demand exerted downward pressure on lead prices.

Policy Impact: New National Standards and Market Adaptation

On the policy front, the implementation of new national standards for lead ingots raised the delivery threshold, reducing the number of lead ingots eligible for delivery in the market. Although this initially pushed prices up, as the market gradually adapted to the new policy, its impact on prices weakened.

International Market: Inventory Changes and Price Linkage

In the international market, the increase in LME lead inventories had a corresponding effect on domestic lead prices. The divergence in inventories—high overseas and relatively low domestically—also influenced lead prices to some extent.

Comprehensive Factors: Cost Support and Expectation Adjustments

Despite the easing of tight supply, raw material costs continued to provide support. The tight supply of scrap sealed lead-acid batteries led to reduced capacity utilization at recycled lead plants, limiting the room for lead prices to fall. Additionally, market adjustments to future supply and demand expectations also influenced the trend of lead prices to some degree.

Overall, the lead price decline was a natural response to changes in supply and demand. In a global market, each price fluctuation in lead is driven by a mix of factors. For industry participants, like 'Kaiying Power', a battery factory focused on producing high-end, high-quality batteries, staying ahead of market trends and adjusting strategies. If you're looking for a reliable lead-acid battery supplier, feel free to reach out to Kaiying Power—we’re here to provide you with the latest prices and top-notch products.