SHFE Lead Moved Sideways During the Day, Under Pressure at the Close with a Slight Decline [Brief Comment on Lead Futures]

SMM, May 11:

The most-traded SHFE lead 2606 contract opened at 16,705 yuan/mt intraday. From the early session to mid-session, SHFE lead prices moved sideways within the range of 16,680-16,730 yuan/mt. Affected by relatively loose primary lead supply coupled with weak downstream consumption, lead prices pulled back under pressure near the end of the session, hitting a low of 16,655 yuan/mt, and finally closed at 16,675 yuan/mt, down 35 yuan/mt or 0.21%. Supply side, production cuts at secondary lead enterprises led to regional tightness in lead ingot supply, while primary lead production remained stable with a slight increase, resulting in relatively loose overall supply. Bullish and bearish factors were intertwined on the supply side. Consumption side, the off-season trend in the lead-acid battery market remained unchanged, but with the holiday factor removed, downstream enterprises will resume purchasing as needed. SMM expects lead prices to maintain a fluctuating trend in the doldrums in the short term.

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