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How Lead Sheet Prices Affect the Lead Market
2022-07-14

It can be predicted that the "price war" that dominates the market may lead to a weakening of cyclical demand. Most major merchants are bystanders. It is understood that transactions in the local market are relatively common recently. From the basic point of view of supply and demand, it does not support the continuous rise of prices. Once the market mentality returns to rationality, price correction is an inevitable trend. Fortunately, futures will perform well in the near future, giving some confidence to local businesses, whose mentality is relatively stable. In terms of resources, the local market has less supplementary resources, less foreign resources, less lead plate resources, some resources have insufficient specifications, and market stocks are less. Most lead sheeters have little pressure to hold steady and wait and see sales. Overall, prices in surrounding markets remained stable. Also, futures are doing well. Lead sheet merchants have less inventory pressure, and the local market is relatively stable. To sum up, the local market is basically a weak relationship between supply and demand, and the local market price may consolidate in the later period.


The lead industry has been a bit of a miserable lately. The pain of weakening infrastructure in 2018 has not yet been lifted, and demand has softened in the off-season. Credit defaults have led to a decline in risk appetite in the real estate industry chain, more like a left hook in the face, while rising costs have led to a decline in gross profit per ton, followed by a right hook in the damaged steel industry, which is also particularly targeted. The light compensates for the risk of another trade war. So far, Hong Kong's main stock market has weakened in the capital market for many days, and generally speaking, this is not a short-term rebound. Lately, the lead sheet industry has been a bit of a miserable one. Demand for lead sheet is expected to weaken significantly. As the need for infrastructure has decreased, so has the need for potential customers, and the profile of potential customers has changed. Zhitong Finance has learned that the growth rate of domestic infrastructure investment is still declining year by year, and it continues to reduce demand expectations for potential customers.


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