Lead market weak, SHFE lead fluctuates rangebound [Brief Lead Futures Review]

SMM Aug 27:

The most-traded SHFE lead 2509 contract opened at 16,880 yuan/mt, briefly touched a low of 16,870 yuan/mt in early trading, and then slightly rebounded, fluctuating rangebound around 16,920 yuan/mt. It finally closed at 16,890 yuan/mt, down 0.24%, with a small bearish candlestick, and the open interest stood at 49,915 lots.

Recently, downstream consumption in the lead market has been stable, and the enthusiasm for procurement and stockpiling by downstream consumers has not significantly increased, still mainly relying on just-in-time procurement. In the primary lead market, the tight balance between supply and demand for lead concentrates continues to intensify, with some smelters experiencing a decline in raw material inventory, and production at some smaller-scale smelters may fall short of expectations. Secondary lead enterprises are facing losses and undersupply of scrap, leading to an increase in the number of shutdowns and production cuts in September. Overall, lead prices are expected to maintain a fluctuating trend in the short term.

Source statement: Apart from publicly available information, other data is derived from public information, market exchanges, and SMM's internal database model, processed by SMM for reference only and does not constitute decision-making advice.