SHFE Lead Hits Four-Week Low, Breaking Below 10-Day Daily Average [Lead Futures Brief Review]

SMM November 17:

The SHFE lead 2511 contract settled at 17,270 yuan/mt today, with a settlement price of 17,300 yuan/mt, an open interest of 2,835 lots, a delivery volume of 14,175 mt, and warrant inventory of 32,965 mt. The SHFE lead 2511 contract was smoothly delivered.

The most-traded SHFE lead 2601 contract opened at 17,460 yuan/mt today. At the beginning of the session, due to long liquidation, SHFE lead fluctuated downward, broke below the 10-day moving average support level, touched a low of 17,310 yuan/mt, and finally closed at 17,355 yuan/mt, down 245 yuan/mt or 1.39%. It hit a new low in nearly four weeks and formed a large bearish candlestick.

The SHFE lead 2511 contract was smoothly delivered today, with the delivery scale below expectations. Social inventory of lead ingots remained at a nearly one-year low. In November, upstream and downstream enterprises in the lead industry chain started long-term contract negotiations for lead concentrates and lead ingots. The raw material supply gap remained the core issue in the negotiations, which is expected to support lead prices and maintain a relatively strong market.

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