SMM December 31:
The most-traded SHFE lead 2602 contract opened at 17,350 yuan/mt, and at the beginning of the session, affected by long position reductions, the price dropped sharply to 17,115 yuan/mt, then bottomed out and rose, with a late-session rally above the daily average line. The KDJ line gap narrowed, and it finally closed at 17,255 yuan/mt, down 115 yuan/mt, a decrease of 0.66%. This ended six consecutive days of gains, recording a long-legged bearish candlestick.
Approaching the New Year's Day holiday, trading in the spot lead ingot market was sluggish. Suppliers' willingness to sell generally weakened, with some expanding discounts to sell for cash flow purposes. Downstream battery enterprises had low purchasing sentiment due to factors such as pre-holiday closures and inventory checks. In addition, affected by ongoing environmental protection-related controls, finished product inventories of domestic secondary lead enterprises remained low. After the holiday, as downstream battery plants gradually resume production and restart purchasing, spot market activity is expected to improve, but caution is needed against the ripple effects of macro sentiment changes on lead prices.
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