SMM, June 8:
Last Friday, the LME lead 3M contract opened at $2,015/mt, edged down slightly in the Asian session and then moved sideways in the range of $2,006.5-2,012/mt; during the European session, driven by capital, it gradually strengthened, rose to a high of $2,018.5/mt, but encountered obvious resistance, pulled back near the close, dipped to $1,999/mt, and finally closed at $1,995/mt.
On Friday night, the most-traded SHFE lead 2606 contract opened at 16,380 yuan/mt, briefly surged to 16,455 yuan/mt at the start, then met resistance and pulled back, subsequently fluctuated downward and broke below the daily average support, dipped to 16,365 yuan/mt, and finally closed at 16,405 yuan/mt, forming a small bearish candlestick, down 30 yuan/mt, or 0.18%.
Recently, primary and secondary lead enterprises in Henan, Anhui, and other regions have resumed production intensively, leading to a significant increase in lead ingot supply; however, downstream consumption recovery has been slow, enterprises' purchase willingness remains weak, and combined with the off-season and high temperatures, some downstream enterprises plan to suspend production and take holidays, which will further weaken consumption. However, during the decline in lead prices, scrap battery prices have seen relatively limited declines due to tight supply, causing secondary lead enterprises' losses to widen, while the cost side still provides some support to lead prices.
![Production Resumption Increments and Off-Season Consumption Resonate, Secondary Lead Cost Side Limits Lead Price Downside Room [SMM Lead Morning Meeting Summary]](https://imgqn.smm.cn/usercenter/TmYox20251217171721.jpeg)
