SMM August 10 News:
Futures side, the most-traded SHFE lead 2609 contract opened and consolidated on a strong note during the day, breaking above the recent consolidation range. Bears closing positions pushed the price center higher, and it held up well near the close. The high was 15,890 yuan/mt, and it finally settled at 15,870 yuan/mt, up 140 yuan/mt from the previous trading day's closing price of 15,730 yuan/mt, a gain of 0.89%. Intraday trading volume was 60,214 lots, and open interest decreased by 4,006 lots to 60,186 lots.
Overall, the most-traded SHFE lead 2609 contract formed small bullish candlesticks on the daily chart for two consecutive days, indicating some short-term strength in futures. However, spot market follow-through was relatively limited, with suppliers actively selling and downstream users cautious and wait-and-see due to high prices. Supply-side tightness in some cargoes and secondary lead cost side provided some support, while insufficient procurement volume on the demand side limited further upside room for prices. Lead prices may continue to consolidate on a strong note in the near term, with attention on inventory changes before delivery, downstream acceptance of higher prices, and the recovery of secondary lead supply.
