SHFE lead consolidates around 16,000 for days, lacking upward momentum but supported below [Lead Futures Brief Comment]

SMM, September 11:

The SHFE lead 2610 contract opened at 16,165 yuan/mt in the daytime session, drifted lower after the open to an intraday low of 16,075 yuan/mt, then stabilized and rebounded, ultimately closing at 16,135 yuan/mt, down 35 yuan/mt or 0.22% from the previous trading day's closing price. Trading volume was 67,960 lots, up 7,741 lots from the previous trading day, with open interest at 62,945 lots. The daily candlestick was a small bullish candle with a long upper shadow. In the spot market, smelters generally held prices firm. Primary lead supply was tight, with some sellers sold out and halting quotes. The discount on secondary refined lead narrowed, with a few quotes turning to premiums. Spot cargo showed resilience and provided support. However, downstream buyers continued to make just-in-time procurement, with average transaction volumes. Overall, SHFE lead has been moving sideways for multiple days between the middle and upper Bollinger Bands, above the 16,000 level, with both upside and downside room constrained. SHFE lead is expected to continue consolidating at highs in the short term. Market participants should keep tracking the 16,000 level and changes in spot transactions, and watch for the transmission of tonight's US CPI to SHFE lead via LME sentiment.

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