Macro Sentiment Boosted and SHFE Lead Remained High after the Holiday

SHANGHAI, May 6 (SMM) - During the day, the SHFE lead 2206 contract was opened at 15,769 yuan/mt. SHFE lead fluctuated upward, reached the high of 15,815 yuan/mt and gradually fell back. In the afternoon, SHFE lead went upward, reached the high of 15,825 yuan/mt, and then the long left the market with profit. SHFE declined most of the increase during the day and ended at 15,775 yuan/mt, up 15 yuan/mt, or 0.1%. Open interest fell by 14 lots to 53,112 lots, and trading volume was 53,738 lots. The lead prices were high, but the poor spot transactions limited the upward trend of the lead prices. The deliverable brands quoted flat over the SMM average price of 1# lead in the retail market of primary lead. The secondary refined lead remained in discounts of 350-450 yuan/mt over the SMM average price of 1# lead. Jiangxi Copper Group and Anhui Tongguan Copper Foil Group in Shanghai market quoted at 15,745 yuan/mt, flat over the SHFE 2205 lead contract. Henan JINLI GOLD and LEAD Group, Jiangxi Copper Group and Anhui Tongguan Copper Foil Group in Zhejiang market quoted at 15,715-15,745 yuan/mt, in discounts of 30-0 yuan/mt over SHFE 2205 lead contract. The downstream procurement willingness was low. In terms of the fundamentals,  the supply side was still in a recovery state, and the demand has not improved, so the lead prices may fall from a high level in the short term, but the high battery scrap prices may limit the decline of lead prices. The SHFE lead is expected to decline slightly from the high position.