SHFE Lead Pulled Back Slightly After a Mild Rise Ahead of Delivery, with Weak Fundamentals Dominating the Market [Lead Futures Brief Review]

SMM News, March 11:

During the session, the most-traded SHFE lead 2604 contract opened at 16,605 yuan/mt. Prices dipped slightly in early trading, then fluctuated rangebound within the 16,630-16,650 yuan/mt range, with the overall trend relatively steady. On the eve of delivery, SHFE lead typically rallied. In the afternoon session, lead prices fluctuated upward, hitting a high of 16,735 yuan/mt. However, dragged down by weak fundamentals, lead prices fluctuated downward and closed at 16,680 yuan/mt, up 30 yuan/mt, a gain of 0.18%. As downstream purchase willingness remained weak, lead ingot inventories at medium- and large-scale smelters in Henan and other regions continued to build and were steadily transferred to social warehouses. Secondary lead smelters showed low willingness to sell, and spot discounts narrowed somewhat. Overall, the pattern of both weak supply and weak demand remained unchanged, and lead prices are expected to remain in the doldrums in the short term.

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