Bulls Cut Positions, Overnight Lead Futures Fell in Both Sessions [SMM Lead Morning Brief]

SMM May 28:

Overnight, LME lead opened at $2,016/mt, rising first then falling during the Asian session with a high of $2,021/mt. It then fluctuated downward after entering the European session, dipping to $2,000/mt near the close, and finally settled at $2,001/mt, down 0.72%.

Overnight, the most-traded SHFE lead 2607 contract opened lower with a gap at 16,690 yuan/mt, briefly touching a high of 16,710 yuan/mt at the start of the session. After bulls reduced positions, it fluctuated downward to a low of 16,580 yuan/mt, and finally settled at 16,615 yuan/mt, down 0.69%.

End-use demand for lead-acid batteries weakened, with retail stores seeing new battery inventory buildup and low scrap battery recycling volumes. Sales promotions were frequent in the market, and manufacturers' willingness to purchase lead ingots remained subdued. Additionally, multiple secondary lead enterprises plan to resume production after maintenance ends in early to mid-June, concentrating short-term bearish factors on lead prices. Subsequent focus should be on scrap battery supply and its impact on enterprises' production resumption progress.

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.