Nonferrous Metals Rose Broadly, the Most-Traded SHFE Lead Contract Recorded Two Consecutive Gains [Lead Futures Brief Review]

SMM October 9:

The most-traded SHFE lead 2511 contract opened at 17,000 yuan/mt today, touched a low of 16,905 yuan/mt in early trading, then fluctuated upward. Boosted by macro sentiment, nonferrous metals generally rose. The SHFE lead contract extended gains in the afternoon, hitting a high of 17,155 yuan/mt, and finally closed at 17,115 yuan/mt, up 1.03%, marking two consecutive gaining sessions, with open interest at 40,199 lots.

In September, lead smelters were generally in a state of production cuts or shutdowns. Downstream enterprises actively stockpiled lead ingots before the National Day holiday. In addition to spot lead ingots before the holiday, downstream enterprises also pre-purchased a certain volume of lead ingot supply for during or even after the holiday. Therefore, downstream enterprises picked up goods successively during the holiday, leading to a decline in social inventory of lead ingots compared to pre-holiday levels, dropping to the lowest level since September 5, 2024. Furthermore, with only four trading days left before the delivery of the SHFE lead 2510 contract, attention should be paid to the potential increase in visible inventory of lead ingots due to delivery brand lead ingots being transferred to delivery warehouses. Meanwhile, secondary lead smelters plan to resume production after the holiday in October, combined with the expectation of imported lead arriving at ports, social inventory of lead ingots may turn to an increasing trend next week. Overall, lead prices have limited upward momentum and may maintain a fluctuating trend in the short term.

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