SHFE Lead Opened Lower with a Gap and Remained in the Doldrums, LME Lead Struggled to Rise and Retreated after Rapid Rise [SMM Lead Morning Brief]

SMM, April 10:

Overnight, LME lead opened at $1,943/mt. During the Asian session, prices dipped briefly before oscillating higher to touch $1,948/mt. Entering the European session, lead prices continued to weaken, hitting a low of $1,921/mt, before rebounding slightly toward the close, ultimately settling at $1,925.5/mt, down $22/mt or 1.13%.

Overnight, the most-traded SHFE lead 2605 contract opened lower with a gap at 16,710 yuan/mt. Early in the session, prices moved sideways within the 16,710-16,745 yuan/mt range, touching a high of 16,745 yuan/mt, before coming under pressure and weakening to a low of 16,675 yuan/mt. After 23:00, prices rebounded slightly but lacked upward momentum, ultimately closing at 16,705 yuan/mt, forming a bearish candlestick, down 80 yuan/mt or 0.48%.

Supply side, social inventory of lead ingots across five major regions in China decreased slightly. Some secondary lead enterprises accelerated resumption of production after the holiday, with capacity gradually being released. Meanwhile, some smelters cut production slightly due to raw material shortages of scrap batteries, presenting a mixed supply picture. Demand side, the market was dominated by just-in-time procurement, with a few participants restocking on dips, while most others primarily fulfilled long-term contracts, and the spot order market remained sluggish. Resistance on SHFE lead became increasingly evident, and lead prices were expected to maintain a range-bound consolidation trend going forward.