The demand side remains the core contradiction suppressing the rise in lead prices, and SHFE lead dipped to 15,780 yuan/mt in the afternoon [Lead Futures Brief].

SMM July 20:

The SHFE lead 2609 contract opened at 15,950 yuan/mt in the day session, drifted lower after opening, and in the afternoon bears intensified selling to push prices down to 15,780 yuan/mt. Near the close, bears took profits, leading to a slight rebound, and the contract finally settled at 15,810 yuan/mt, down 0.41%.

The demand side remained the core constraint capping lead price rises. The battery industry is currently in the traditional consumption off-season, with lead-acid energy storage and EV battery plants in China operating at low levels. Downstream enterprises hold ample channel inventory, and a strong wait-and-see sentiment dominates procurement. There are only sporadic rigid demand purchases in the market, with an absence of bulk restocking. Spot transactions remained sluggish, failing to provide sustained buying support to the futures market.

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