US LME 3-month lead closes $41 lower at $2,011 a ton

US LME 3-month lead closes $41 lower at $2,011 a ton

The US LME 3-month lead futures closed $41 lower at $2,011 per ton on July 2, 2025, marking a notable decline from the previous day's closing price. This drop in lead prices can be attributed to several market dynamics, including fluctuations in supply and demand, macroeconomic factors, and geopolitical influences.

Throughout the Asian session on July 22, 2025, LME lead futures opened at $2,010 per ton and traded rangebound. However, during the European session, prices slightly rose to a high of $2,017.5 per ton before dipping to a low of $1,994 per ton and subsequently rebounding to close at $2,015 per ton, up 0.17% [1]. This volatility reflects the ongoing tug-of-war between bullish and bearish sentiments in the market.

Macroeconomic factors also played a significant role in the lead market. US Treasury Secretary Bessent's comments on potential interest rate adjustments based on inflation data and the European Union's sanctions against Russia have contributed to market uncertainty [1]. Additionally, the automotive industry's ongoing regulatory efforts to stabilize the NEV (New Energy Vehicle) market have impacted the demand for lead, a key component in lead-acid batteries [1].

The growth of lead ingot social inventory has slowed down, with a decrease of 3,475 tons in LME lead inventory and a total social inventory increase of 7,900 tons in SMM lead ingots [1]. This trend suggests that while suppliers are actively expanding discounts to sell lead, downstream enterprises are making just-in-time purchases, leading to a slower digestion of social inventory.

Moreover, the maintenance status of some primary lead enterprises in Central China has exacerbated regional supply tightness [1]. This supply-demand imbalance has contributed to the overall stability of lead prices in the short term.

In summary, the US LME 3-month lead futures closed $41 lower at $2,011 per ton on July 2, 2025, influenced by market fluctuations, macroeconomic factors, and geopolitical events. The ongoing supply and demand dynamics, as well as regulatory pressures, will continue to shape the lead market's trajectory in the coming weeks.

References:
[1] https://news.metal.com/newscontent/103438556/The-growth-of-lead-ingot-social-inventory-slowed-down-WoW-and-lead-prices-held-up-well-[SMM-Lead-Morning-Meeting-Summary]