SHFE Lead Stops Falling and Stabilizes, Domestic Market Raw Material Slightly Eases [Lead Futures Brief Review]

SMM December 18:

The most-traded SHFE lead 2601 contract opened at 16,865 yuan/mt, briefly hit a high in early trading, then fluctuated downward to a low of 16,740 yuan/mt. It later rebounded during the session and fluctuated rangebound above 16,770 yuan/mt, finally closing at 16,780 yuan/mt, up 10 yuan/mt or 0.06%. A small bearish candlestick was recorded.

This week, lead supply and demand improved slightly, with some primary lead smelters resuming production, though the increase in lead ingot supply remained limited. Secondary lead production remained stable as tight raw material supply eased somewhat, but production cuts due to environmental protection-related controls in east China offset part of the increase. Coupled with scrap battery remaining in the off-season for retirement, overall raw material supply stayed tight. However, battery plants' purchase willingness remained mediocre, with most purchasing as needed. Overall, lead prices are expected to fluctuate rangebound in the short term, with any upward breakthrough depending on battery plants' stockpiling intensity before the New Year's Day holiday.

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