Lead Futures: LME Outperforms SHFE, Domestic Fundamentals Drag Down Lead Prices [SMM Lead Morning News]

SMM February 12:

Overnight, LME lead opened low at $1,974.5/mt, fluctuating upward during the Asian session; it then climbed to a high of $1,996/mt during the European session, ultimately closing at $1,994.5/mt, up 0.86%.

Overnight, the most-traded SHFE lead 2603 contract opened at 16,800 yuan/mt, briefly touching a high of 16,805 yuan/mt at the start of the session. It weakened and fell to a low of 16,700 yuan/mt due to a decline in both supply and demand fundamentals, ultimately closing at 16,725 yuan/mt, down 0.09%.

As the Chinese New Year holiday approaches, spot quotations continue to decrease. Downstream battery producers have largely entered the holiday period, resulting in weak purchase willingness for lead ingots. Supply and demand in the spot market have both declined. Some producers are offering pre-sale quotations for post-holiday cargo pick-up, but spot order transactions are thin. Downstream battery producers are expected to resume operations around late February to early March. Post-holiday attention will focus on lead ingot inventory buildup and the impact of secondary lead national standard delivery matters on lead price sentiment.

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