Overnight Lead Prices Pulled Back, Daytime Session in the Doldrums Closing with a Small Bearish Candlestick [Lead Futures Brief]

SMM May 7 News:

The most-traded SHFE lead 2606 contract opened at 16,840 yuan/mt intraday, edged higher initially before turning to fluctuate downward, touching a low of 16,770 yuan/mt during the session, then rebounded near the close, ultimately settling at 16,820 yuan/mt, down 160 yuan/mt or 0.94%, recording a small bearish candlestick. After the Labour Day holiday, the market returned to normal trading, with lead ingot arrivals at warehouses across regions increasing somewhat, and social inventory entering a seasonal inventory buildup phase. Meanwhile, primary lead smelters in the southwest, east China and other regions successively resumed production, with incremental primary lead supply emerging in the market. Additionally, as the SHFE lead 2605 contract approached delivery, inventory at warehouses around east China rose notably. On the other hand, secondary lead enterprises in east China were still in a concentrated maintenance cycle, with regional lead ingot supply remaining structurally and geographically tight. Overall, bullish and bearish factors are intertwined in the current lead market, and lead prices are expected to hover at highs going forward.

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