SHFE Lead Retreated after Rapid Rise Intraday and Moved Sideways to Close Flat at the End of the Session [SHFE Lead Brief Review]

SMM June 1 News:

During the session, the SHFE lead 2607 contract opened at 16,540 yuan/mt. Prices oscillated upward in the early session, then came under pressure and weakened in the afternoon, dipping to a low of 16,525 yuan/mt. The market subsequently stabilized and moved sideways within the 16,530-16,540 yuan/mt range. It closed slightly higher at 16,560 yuan/mt, with a % change of 0.00%. On the supply side, bullish and bearish factors were intertwined. Concentrated maintenance at China's primary lead smelters constrained primary lead supply, while some secondary lead smelters gradually resumed production and increased output. A slight destocking in lead ingot social inventory and the rigid cost support from scrap battery raw materials provided a floor for futures; however, downstream battery end-use consumption remained generally weak, limiting upside room. In the short term, lead prices are expected to mainly move sideways within a range.

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