SMM June 2 News:
During the session, the SHFE lead 2607 contract opened at 16,560 yuan/mt, briefly surged to 16,610 yuan/mt at the start before encountering resistance and failing to break through the overhead pressure, then fluctuated downward, dipping to a low of 16,535 yuan/mt. In the afternoon, funds gradually entered the market to support futures, and prices steadily recovered from the lows. Toward the close, prices moved sideways within the 16,570-16,600 yuan/mt range, ultimately settling at 16,600 yuan/mt, up slightly by 40 yuan/mt or 0.24%, recording a small bullish candlestick. Currently, secondary lead smelters have resumed production with increased output, but some primary lead enterprises remain under maintenance, with supply still tight in certain regions. On the demand side, the battery industry is deep in the traditional off-season, with end-use consumption lacking momentum. Downstream producers mostly restocked on an as-needed basis, with limited willingness for large-volume stockpiling. On the cost front, scrap battery supply remained tight with quotes staying high, providing strong floor support for lead prices from the raw material side. With bullish and bearish factors intertwined across supply-demand and cost dynamics, lead prices are highly likely to move sideways within a range in the short term.
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