Lead Futures: LME Outperforms SHFE, Overnight LME Lead Probed Higher to $2,022/mt [SMM Lead Morning Brief]

SMM May 27:

Overnight, LME lead opened at $2,011.5/mt, briefly touched a low of $2,010/mt during the Asian session before fluctuating upward; entering the European session, it probed a high of $2,022/mt before pulling back slightly, ultimately closing at $2,015.5/mt, up 0.12%.

Overnight, the most-traded SHFE lead 2607 contract opened at 16,740 yuan/mt, fluctuating around the intraday moving average, with an intraday low of 16,710 yuan/mt and a high of 16,775 yuan/mt, ultimately closing at 16,745 yuan/mt, down 0.06%.

Consumption side, the lead-acid battery market remained in off-season mode, with downstream enterprises' rigid demand still limited. Combined with the fluctuating rebound in lead prices, downstream enterprises became more cautious in procurement. Supply side, production at both primary lead and secondary lead enterprises was stable with a slight increase. Secondary lead losses began to recover, market circulating supplies increased, and spot lead trading gradually shifted to a discount (against SMM #1 lead). Meanwhile, tight supply of high-grade lead ingots in the Southeast Asian market has yet to ease, while Australian lead-zinc smelters ramped up production. With bullish and bearish factors coexisting, lead prices are expected to continue fluctuating at highs.

Data source disclaimer: Data other than public information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.