The Most-Traded SHFE Lead 2605 Contract Retreated After a Rapid Rise but Closed Higher, with Strong Wait-and-See Sentiment in the Spot Market Amid the Tug-of-War Between Sellers and Buyers [Lead Futures Brief Commentary]

SMM News, March 23:

The most-traded SHFE lead 2605 contract opened at around 16,390 yuan/mt during the day. After the opening, bulls remained strong, pushing SHFE lead prices sharply higher to an intraday high of 16,500 yuan/mt. Prices then dropped back slightly and fluctuate rangebound in the 16,440-16,470 yuan/mt range, overall holding up well. During the session, the price center of SHFE lead moved lower, touching a low of 16,320 yuan/mt. Near the close, SHFE lead prices rebounded slightly and finally closed at 16,395 yuan/mt. A small bullish candlestick was recorded, up 105 yuan/mt, or 0.64%. Supply side, discounts quoted by primary lead smelters narrowed slightly from last Friday, while secondary lead quotes held firm and willingness to sell was cautious. Demand side, downstream battery plants mainly purchased on a rigid-demand basis through long-term contracts, while wait-and-see sentiment for spot orders was strong. On the downside, lead prices were supported by rigid scrap battery costs, selling reluctance amid losses in secondary lead, and firm spot premiums. On the upside, pressure came from the impending entry into the demand off-season and weak macro demand. SMM expects lead prices to fluctuate at lows and repair, with limited room both upward and downward.

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