Weak Consumption Weighs on Lead Futures Prices, Industry Tug of War Awaits Direction [Lead Futures Brief]

SMM July 23 News:

The SHFE lead 2609 contract opened at 15,820 yuan/mt, drifted higher after opening, reached a high of 15,940 yuan/mt, then retraced some gains due to weak support, and finally closed at 15,905 yuan/mt, up 1.14%.

China's lead market continues its weak supply-demand pattern, with short-term lead prices still facing downward pressure. Primary lead smelter inventories are accumulating, while room for production cuts in secondary lead is limited by cost constraints. Market expectations for the traditional peak season in Q3 are cautious, the industrial game is gradually heating up, and some smelters plan to arrange maintenance. Going forward, the focus will be on tracking the progress of long-term contract negotiations by major smelters, while remaining vigilant against the suppressing risks posed by continuous crude lead imports and high inventories outside China on the futures market.

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