Bears reduced their positions, and the most-traded SHFE lead contract reached a high of 17,305 yuan/mt overnight [SMM Lead Morning News]

SMM on July 4:

Overnight, LME lead opened at $2,057.5/mt, touched a low of $2,057/mt early in the session, and then fluctuated upward to reach a high of $2,073/mt. During the European session, it oscillated around the intraday average, eventually closing at $2,063/mt, down 0.02%.

Overnight, the most-traded SHFE lead 2508 contract opened lower with a gap at 17,220 yuan/mt, touched a low of 17,215 yuan/mt, and then fluctuated upward as bears reduced their positions. It eventually closed at a high of 17,305 yuan/mt, up 0.26%.

Supply side, a secondary lead smelter in east China recently resumed production and is expected to produce lead normally by the end of this week. Following the rise in lead prices, the supply of secondary lead has gradually increased. Additionally, a primary lead smelter in east China plans to conduct maintenance in Q4, which has boosted market sentiment. Although there has been no significant improvement in the consumption of lead-acid batteries, some downstream battery producers have started preparing for the peak season in advance, leading to an improvement in operating rates and an increase in demand for cargo pick-up of long-term contract lead ingots. Overall, lead prices may remain strong and fluctuate in the near term, but attention should be paid to the drag on lead prices from actual consumption performance and lead ingot supply.