SHFE Lead First Declined Then Rallied, Closing Slightly Higher with a Shaven Head Bullish Candlestick [Lead Futures Brief Commentary]

SMM May 26 News:

The most-traded SHFE lead 2607 contract opened at 16,645 yuan/mt intraday. Prices briefly rose at the opening before pulling back under pressure, dipping to a low of 16,610 yuan/mt during the session. In the latter part of the session, prices fluctuated higher, recovering part of the earlier losses, touching a high of 16,715 yuan/mt near the close, and ultimately settled at the high of 16,715 yuan/mt, forming a bullish candlestick with no upper shadow, up 20 yuan/mt or 0.12%. In terms of supply, the lead ingot import arbitrage window is currently closed, reducing the inflow of imported cargoes and tightening the supply side marginally. However, multiple secondary lead enterprises in east China have successively resumed production, and secondary lead production rose WoW last week, with bullish and bearish factors intertwined on the supply side. As of May 25, SMM social inventory of lead ingots across five regions totaled 70,100 mt. Although inventory edged down from the previous period, it remained at elevated levels overall, with a slow destocking pace. Overall, lead prices are expected to maintain a fluctuating trend in the short term.

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