SHFE Lead Continued to Weaken, Recording Five Consecutive Declines [Lead Futures Brief Review]

SMM Feb. 5:

The most-traded SHFE lead 2603 contract opened at 16,635 yuan/mt, briefly touched a high of 16,640 yuan/mt in early trading, then weakened gradually due to long position reductions, hitting a low of 16,530 yuan/mt before closing at 16,555 yuan/mt, down 35 yuan/mt or 0.21%. It recorded five consecutive declining sessions, with the KDJ lines converging.

As the Chinese New Year approaches, the holiday atmosphere is strong across the lead industry chain, and market activity has significantly decreased. Due to the continued weak performance of lead prices, losses for secondary lead smelters have further widened, leading to a notable decline in their willingness to sell. Meanwhile, downstream battery enterprises are mostly adopting a wait-and-see attitude, awaiting post-holiday resumption of work, generally not accepting spot orders, and purchase willingness in the market is weak. Affected by this, trading in the spot market is overall sluggish, with limited transactions. This sluggish situation is expected to persist around the Chinese New Year.

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