SHFE Lead Fluctuated Downward Intraday with Price Center Shifting Slightly Lower [Lead Futures Brief Comment]

SMM May 8 update:

The most-traded SHFE lead 2606 contract opened at 16,770 yuan/mt intraday. At the beginning of the session, SHFE lead prices moved sideways within the range of 16,750-16,785 yuan/mt. Subsequently, dragged down by lead ingot inventory buildup, prices fluctuated downward, hitting an intraday low of 16,610 yuan/mt. Prices rebounded slightly toward the close, ultimately settling at 16,710 yuan/mt, down 110 yuan/mt or 0.65%, recording a small bearish candlestick. Sentiment side, geopolitical tensions outside China resurfaced, tightening the macro atmosphere and driving non-ferrous metals overall under pressure to pull back. Fundamentals side, production cuts and shutdowns at secondary lead smelters expanded in scope, but the lead-acid battery industry entered the traditional consumption off-season, with supply and demand weakening simultaneously. Lead ingot inventory continued to accumulate after the holiday, making it difficult to provide effective support for lead prices. In the short term, lead prices are expected to continue their pullback, giving back part of the earlier gains.

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