Overnight SHFE Lead Opened Higher with a Gap and Fluctuated Upward, Closing with a Shaven Head Bullish Candlestick [SMM Lead Morning Brief]

SMM April 28:

Overnight, LME lead opened at $1,963/mt. During the Asian session, LME lead moved sideways within the $1,959.5-1,966.5/mt range, touching a high of $1,966.5/mt. Entering the European session, LME lead prices shifted to a fluctuating downward trend, dipping to $1,947/mt. Supported by LME lead inventory destocking, LME lead rebounded with fluctuations, ultimately closing at $1,963.5/mt, up 0.15%.

Overnight, the most-traded SHFE lead 2606 contract opened higher with a gap at 16,740 yuan/mt. It briefly fluctuated downward at the start of trading, dipping to 16,700 yuan/mt, then rebounded with fluctuations, ultimately closing at a high of 16,785 yuan/mt, up 70 yuan/mt or 0.42%. Its open interest reached 64,643 lots, an increase of 439 lots from the previous trading day.

Consumption side, with the Labour Day holiday approaching, downstream enterprises showed weak follow-through on just-in-time procurement. Supply side, affected by tight raw material inventory, some secondary lead smelters adopted production cuts or production suspensions, and regional secondary lead spot cargo continued to tighten. Meanwhile, primary lead ingot social inventory saw slight destocking. The current market presented a supply-demand dual-weakness pattern, and lead prices were expected to maintain a fluctuating trend in the short term.