Bulls Withdraw Funds, SHFE Lead Falls Over 1.5% [Lead Futures Brief Review]

SMM January 30:

The most-traded SHFE lead 2603 contract opened at 17,035 yuan/mt. At the beginning of the session, a large amount of funds from bulls withdrew, and SHFE lead fluctuated downward, touching a low of 16,850 yuan/mt during the tail of the session. It finally closed at 16,865 yuan/mt, down 260 yuan/mt, or 1.52%. A large bearish candlestick was recorded.

Yesterday afternoon, lead prices rose, which stimulated downstream fear of rising sentiment, so downstream battery enterprises' purchasing enthusiasm increased slightly. Some battery enterprises had completed pre-Chinese New Year stockpiling, and purchasing sentiment was low today. Some traders offered at large discounts to make sales, while secondary lead smelters' offer discounts were basically flat compared with yesterday. Next week, battery enterprises will gradually begin to suspend production for the holiday, and their willingness to purchase lead ingots will drop to a freezing point. The spot market is mixed with both longs and shorts, and lead prices are expected to continue fluctuating at lows. It is necessary to pay attention to whether a broad rise in precious metals and nonferrous metals will drive lead prices to warm up.

Data source statement: Except for public information, other data are processed by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and do not constitute decision-making advice.