The Most-Traded SHFE Lead 2604 Contract Bottomed Out Intraday but Closed Lower; Weak Consumption and Elevated Inventory Weighed on Lead Prices [Lead Futures Brief Commentary]

SMM News on March 6:

The most-traded SHFE lead 2604 contract opened at 16,780 yuan/mt during the session. Prices quickly dipped in early trading, once touching an intraday low of 16,655 yuan/mt. As bears took profits and closed positions, lead prices rebounded. SHFE lead prices fluctuated upward intraday, repeatedly moving within the 16,765–16,805 yuan/mt range and once nearing an intraday high of 16,815 yuan/mt. Subsequently, lead prices fluctuated downward, and in late trading fluctuated rangebound around 16,730–16,755 yuan/mt. It finally closed at 16,740 yuan/mt, posting a small bearish candlestick, down 0.21%. As downstream consumption recovery remained weak, spot transactions at smelters stayed sluggish, and the elevated inventory situation saw no significant relief. Lead prices are expected to be under pressure in the short term.

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