SHFE lead edged up slightly during the day, with the three KDJ lines converging. [Lead Futures Brief Review]

SMM January 5:

The most-traded SHFE lead 2602 contract opened at 17,365 yuan/mt during the day. After briefly touching a low of 17,300 yuan/mt in early trading, it fluctuated upward driven by bulls adding positions, reaching a high of 17,480 yuan/mt. In the afternoon, it pulled back slightly, with the three KDJ lines gradually converging. It finally closed at 17,395 yuan/mt, up 40 yuan/mt, a gain of 0.23%. The daily chart formed a small bullish candlestick.

After the New Year's Day holiday, trading in the lead industry chain gradually resumed. Some primary lead smelters successively completed maintenance and resumed production, leading to an increase in lead ingot supply. During the holiday, downstream battery enterprises were mostly on holiday, purchases stalled, resulting in a slight accumulation of social lead ingot inventory. On the secondary lead side, enterprises actively raised purchase offers to compete for raw materials. However, affected by tight raw material supply and environmental protection-related controls, some enterprises remained in a state of production cuts. Overall, the lead market showed a weak supply-demand pattern. Lead prices are expected to continue fluctuating at highs in the short term, with subsequent attention needed on the interplay between increasing primary lead supply and decreasing secondary refined lead output.

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