Intraday SHFE Lead Rebounds but Fails, Erasing All Gains [Lead Futures Brief Review]

SMM November 24:

The most-traded SHFE lead 2601 contract opened at 17,140 yuan/mt today. After moving sideways around the daily average line in early trading, it rebounded to around 17,200 yuan/mt by midday. However, due to insufficient support from the 60-day moving average, bulls reduced their positions, causing the contract to give up all of today's gains and close at 17,135 yuan/mt, down 30 yuan/mt, or 0.17%. This marked the third consecutive day of decline.

As lead prices continued to fall, some downstream battery plants mainly purchased based on rigid demand, with a strong wait-and-see sentiment. Secondary lead smelters primarily focused on delivering previously signed long-term contracts, while some spot orders were offered at parity or a discount of 50-0 yuan/mt. Due to cold weather, lead-acid batteries entered the off-season, leading to a decrease in recycling volume. Some waste lead-acid battery recycling enterprises in east China lowered their purchase prices by 50-25 yuan/mt, weakening cost support. With no factors driving a rebound in the futures market recently, lead prices are expected to remain in a fluctuating trend in the short term.

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