SMM July 27: Today, the most-traded SHFE lead 2609 contract opened at 15,730 yuan/mt. After the opening, bears added positions, causing SHFE lead to fall rapidly, hitting a session low of 15,520 yuan/mt, the lowest in nearly two weeks. In the afternoon, some bears took profits, and SHFE lead rebounded, recovering part of the losses before finally closing at 15,635 yuan/mt, down 0.57%. Open interest for the most-traded SHFE lead contract stood at 104,000 lots, up 422 lots from the previous trading day.
Currently, the fundamentals remain in the doldrums. On one hand, primary lead producers are gradually resuming output, keeping supply pressure in the market. On the other hand, the lead-acid battery market is still in its consumption off-season, with downstream enterprises largely making just-in-time procurement. Improvement in spot transactions is limited, providing insufficient support for lead prices. Meanwhile, social inventory of lead ingots continues to build up, and the supply-demand imbalance has not yet eased significantly. It is expected that SHFE lead will continue to consolidate on a subdued note in the short term.
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