SHFE Lead Prices Lacked Upward Momentum, and the Pattern of Doldrums Was Difficult to Change [Lead Futures Brief Review]

SMM, March 24:

The most-traded SHFE lead 2605 contract opened at 16,435 yuan/mt intraday. After the opening, prices edged lower, and the tug-of-war between longs and shorts intensified. SHFE lead prices fluctuated at lows in consolidation, touching an intraday low of 16,385 yuan/mt. Thereafter, bulls gradually gained strength and prices fluctuated higher, but with insufficient upward momentum, lead prices pulled back again and fluctuated rangebound within the 16,429-16,451 yuan/mt range. Near the close, SHFE lead prices dipped slightly and finally settled at 16,420 yuan/mt. A small bearish candlestick was recorded, up 25 yuan/mt, or 0.15%. In terms of supply, primary lead enterprise quotes saw discounts narrow slightly from last Friday, and spot cargo available for pickup at plants with medium to large discounts decreased significantly; in the secondary refined lead market, fewer merchants offered quotes, with relatively prominent price divergence between upstream and downstream players. Downstream buyers showed limited acceptance of premiums, while upstream quotes stayed firm and willingness to sell remained cautious. On the demand side, downstream enterprise procurement pace was relatively scattered, with most purchases centered on the execution of long-term contracts. Some enterprises replenished inventories on dips based on immediate needs, and overall market transactions were mixed. SMM expects SHFE lead prices to remain in the doldrums in the short term.

Statement on data sources: Except for public information, all other data is derived by SMM through processing based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute decision-making advice.