SHFE Lead 2605 Contract Closed Lower After Intraday Fluctuations, the Tug-of-War Between Sellers and Buyers Was Expected to Persist in April [Brief Review of Lead Futures]

SMM News, March 30:

During the day, the most-traded SHFE lead 2605 contract opened at 16,460 yuan/mt. Prices edged lower in early trading, then gradually moved higher in choppy trading, supported by destocking of lead ingot inventory in China. In the afternoon, it maintained a relatively firm consolidation range of 16,490-16,510 yuan/mt, and briefly climbed to 16,535 yuan/mt near the close, before finally closing at 16,495 yuan/mt, forming a bearish candlestick with no upper shadow, down 60 yuan/mt, or 0.36%. For primary lead, inventory drawdowns at lead smelters and social warehouses provided some support to lead prices. For secondary lead, production resumptions at some secondary lead smelters and maintenance expectations at some enterprises coexisted in April. On the downstream demand side, producers purchased as needed, with relatively more bargaining in some cases, and transactions were relatively scattered due to the wider range of procurement options. Overall market supply and demand remained in a tug-of-war, and lead prices are expected to continue moving sideways within a range.

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