SHFE Lead Rises First Then Falls, Recording Six Consecutive Gains [Lead Futures Brief Review]

SMM December 30:

The most-traded SHFE lead 2602 contract opened at 17,395 yuan/mt today. At the beginning of the session, driven by short covering, the price rose unilaterally to around 17,620 yuan/mt. Subsequently, pressured by the general weakness in precious metals, it pulled back and fluctuated downward near the daily average line, with the KDJ line gap narrowing. It finally closed at 17,505 yuan/mt, down 30 yuan/mt, a decrease of 0.17%, marking the sixth consecutive day of gains.

Lead prices moved lower first and then higher today. In terms of supply, raw material shortages led some secondary lead enterprises to plan production cuts, and raw material inventories at some enterprises were relatively low, only sufficient to maintain production for the day. On the demand side, as the New Year's Day holiday approaches, downstream battery enterprises have gradually begun holidays or are in the process of inventory counting and account closing, resulting in weak purchase willingness and poor transaction volumes. The weak supply-demand pattern is expected to persist before the holiday, and caution is needed regarding the risk of lead prices retreating after a rapid rise after the holiday, due to the gradual accumulation of finished product inventories at primary lead smelters.

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