LME Lead Explored Highs Before Pulling Back to Close Higher, SHFE Lead Recovered from Previous Daytime Session's Decline and Held Up Well [SMM Lead Morning Brief]

SMM April 8:

Overnight, LME lead opened at $1,930.5/mt. During the Asian session, prices briefly fluctuated upward before pulling back under pressure, dipping to around $1,924.5/mt, then rebounded slightly before turning to fluctuate downward again. During the European session, lead prices fluctuated higher, touching an intraday high of $1,948.5/mt before dropping sharply. In the late session, lead prices gradually recovered losses, ultimately closing at $1,939/mt, up $4.5/mt, a gain of 0.23%.

Overnight, the most-traded SHFE lead 2605 contract opened at a low of 16,715 yuan/mt, surged quickly at the start, then pulled back under pressure. After moving sideways briefly in the 16,730-16,760 yuan/mt range, it trended higher, touching 16,785 yuan/mt. Prices dipped slightly toward the close, ultimately settling at 16,755 yuan/mt, posting a small bullish candlestick, up 25 yuan/mt, a gain of 0.15%.

Supply side, social inventory of lead ingots across five regions in China saw a slight inventory buildup due to the Qingming Festival holiday. Secondary lead enterprises accelerated resumption of operations after the holiday with capacity continuing to release, coupled with imported lead inflows, resulting in ample circulating supply in the market. Demand side, suppressed by high lead prices, downstream enterprises showed strong wait-and-see sentiment, with low willingness to restock after the holiday. SHFE lead faced notable resistance, and lead prices were expected to maintain a fluctuating trend.