The production enthusiasm of smelters turned downward, and the bears reduced their positions, leading to a rebound in SHFE lead in the afternoon. [Lead Futures Brief Review]

SMM March 26, 2025 News

During the day, the most-traded SHFE lead 2505 contract opened at 17,635 yuan/mt, fluctuated downward after opening, and rebounded in the afternoon as shorts reduced their positions, eventually closing at 17,615 yuan/mt, up 0.48%, with an open interest of 58,096. From March to April, the lead-acid battery market is expected to enter the traditional consumption off-season, and the market generally holds a cautious attitude towards future lead demand. Meanwhile, provinces and cities continue to promote trade-in subsidy activities for e-bikes and cars, with attention on their potential to offset the off-season impact. Currently, primary lead smelters are implementing production cuts and maintenance, leading to a phased reduction in supply and a relative tightening of market circulation. On the secondary lead side, as scrap battery prices are more likely to rise than fall, smelting profits have shrunk, and smelters' production enthusiasm has declined, which may support lead prices to hover at highs in the short term.

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