SHFE Lead Hits Near 10-Month High, Rising 310 yuan/mt [Lead Futures Brief Review]

SMM January 7:

The most-traded SHFE lead 2602 contract opened at 17,720 yuan/mt. After briefly weakening to around 17,590 yuan/mt in early trading, SHFE lead fluctuated upward driven by inflows of bulls' funds, and touched a high of 17,860 yuan/mt in the afternoon following a slight correction before noon. It finally closed at 17,830 yuan/mt, up 310 yuan/mt or 1.77%. The daily candlestick formed a large bullish candlestick with no lower shadow.

Driven by rising precious metal prices and increased long positions in the market, SHFE lead hit a nearly 10-month high today, showing strong performance. Currently, the supply of raw materials such as lead concentrates and scrap batteries remains tight, and arrivals at secondary lead smelters decreased. Although smelters have raised raw material purchase prices multiple times, scrap battery suppliers generally held a positive outlook on the market, showing strong reluctance to sell, with hoarding being more obvious in regions like North China. Overall, boosted by macro sentiment and tight raw material supply fundamentals in the short term, lead prices are expected to have further upside room. Attention should be paid to the purchase willingness of downstream battery plants for lead ingots, which may have some impact on future price trends.

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