Production Cuts Disruptions Intertwined With Weak Demand, Tug-of-War Between Longs and Shorts Intensifies [Lead Futures Brief]

Published: Sep 2, 2025 15:43

Save

SMM September 2 news:

The most-traded SHFE lead 2510 contract opened at 16,930 yuan/mt during the day. After opening, SHFE lead plunged, with subdued spot trading activity. Lead prices lacked upward momentum, briefly dipping to 16,830 yuan/mt before closing at 16,850 yuan/mt, down 0.03% for two consecutive losing sessions, with open interest at 51,504 lots.

Recent production cuts on the supply side intertwined with weak consumption performance have intensified the tug-of-war between longs and shorts. Demand-side factors currently exert greater influence on lead prices, with short-term resistance remaining for SHFE lead.

Source statement: Data other than publicly available information is derived from public sources, market exchanges, and SMM's internal database models, processed by SMM for reference only and not constituting investment advice.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 19:50

Lead Prices Stagnant, Smelters Maintain Firm Offers Amid Losses

Lead prices were in the doldrums, while secondary lead smelters maintained firm offers due to losses. The mainstream spot order ex-factory prices including tax narrowed the discount to the SMM #1 lead average price by 100 yuan/mt, shifting to a premium of 0–25 yuan/mt, with some smelters halting offers and sales.

Feb 6, 2026 19:50

Feb 6, 2026 19:49

"Domestic Secondary Crude Lead Market Slows as Holidays Approach, Smelters Halt Production"

Pre-holiday stockpiling by downstream enterprises had largely concluded, and a few had already entered the holiday period, completely suspending procurement. Next week, secondary lead smelters will enter a concentrated wave of production halts and holidays, resulting in sluggish trading activity in the spot market. Offers for spot refined lead orders were sparse, with prices moving in line with the market.

Feb 6, 2026 19:49

Feb 6, 2026 19:48

Sluggish Transactions in Domestic Secondary Crude Lead Market, Prices at 15,250-15,400 Yuan/mt

The domestic secondary crude lead market experienced sluggish transactions. As of February 6, 2026, the ex-factory tax-exclusive offers for domestic secondary crude lead stood at 15,250-15,400 yuan/mt. Downstream refined lead and alloy smelters gradually entered the holiday period, showing weak stockpiling willingness. Overseas lead ingot suppliers basically halted transactions with China due to poor consumption in the Chinese market, with only some previously concluded shipments maintaining normal in-transit transportation. The trading atmosphere in the secondary crude lead market will continue to weaken next week.

Feb 6, 2026 19:48