SMM June 10:
Overnight, LME lead opened at $1,977.5/mt, fluctuating rangebound in the Asian session, with a low of $1,973.5/mt. Entering the European session, it rebounded from the low to reach a high of $1,993.5/mt, and closed with a narrow fluctuation range at $1,988/mt, up 0.71%.
Overnight, the most-traded SHFE lead 2507 contract opened higher with a gap at 16,815 yuan/mt, touching a low of 16,790 yuan/mt in the early session. After a rebound due to short covering, it consolidated, reaching a high of 16,905 yuan/mt, and closed at 16,865 yuan/mt, up 0.81%.
Recently, lead prices have shown a trend of rebounding from lows. Suppliers have been actively selling, with secondary lead prices in some regions (especially Jiangsu and Zhejiang) inverting against primary lead. Secondary refined lead was quoted at a premium of 50-100 yuan/mt against the SMM 1# lead average price ex-works, prompting a small number of downstream enterprises to purchase on dips as needed, with a preference for primary lead delivery sources. As a result, social warehouse inventory declined slightly. In addition, environmental protection inspections were carried out in regions such as Inner Mongolia and Anhui last week, leading some secondary lead enterprises to reduce or suspend production. The short-term reduction in supply will ease the pressure of lead ingot inventory buildup, and lead prices may maintain a fluctuating trend.
