Short-Term Lead Price Support Remains; Overnight Lead Futures Slightly Increased [SMM Lead Morning Brief]

SMM February 26:

Overnight, LME lead opened at $1,986/mt and fluctuated downward during the Asian session. Due to weak US consumer confidence data, the US dollar index pulled back slightly but remained above the 106 mark. As a result, during the European session, LME lead first declined and then rebounded, briefly dipping to $1,978/mt before rising. It surged at the end of the session, reaching a high of $2,011.5/mt and finally closing at $2,000/mt, up by 0.76%.

Overnight, the most-traded SHFE lead 2504 contract opened at 17,125 yuan/mt, briefly touching a low of 17,090 yuan/mt in early trading. Later, supported by the upward movement of LME lead, it rebounded, reaching a high of 17,170 yuan/mt at the end of the session and closing at 17,165 yuan/mt, up by 0.2%.

Recently, the supply of lead ingots in the market has been relatively ample. Downstream battery producers mostly produce based on sales, with only some operating at full capacity, leading to limited demand for lead ingot procurement. In the short term, bearish factors for lead prices are relatively abundant. However, the tight supply-demand balance on the raw material side still provides some support for lead prices. Some smelters in certain regions have reported moderate arrivals of scrap batteries, and the impact of changes in raw material supply on lead prices needs further observation.