SMM February 6:
The most-traded SHFE lead 2603 contract opened at 16,545 yuan/mt, came under pressure in the morning session due to bulls reducing positions, then found support and rebounded near 16,520 yuan/mt, but struggled to sustain gains and weakened again. The contract fluctuated in an M-shaped pattern throughout the day, further declining toward the close and hitting a low of 16,505 yuan/mt. It finally closed at 16,510 yuan/mt, down 45 yuan/mt or 0.27%, marking the sixth consecutive decline.
The lead market saw weak supply and demand. With lead prices hovering at low levels, offers and trading activity from primary and secondary lead smelters weakened further, and some enterprises entered holiday mode. Downstream, most enterprises completed pre-holiday stockpiling, with only a few willing to buy the dip, leading to a noticeable drop in spot market activity. The weak supply-demand situation is expected to persist next week, with lead prices continuing to fluctuate at lows.
Data source statement: Except for publicly available information, other data were processed by SMM based on public information, market communication, and SMM's internal database model, and are for reference only, not constituting decision-making advice.
