SMM Jan. 8:
The most-traded SHFE lead 2602 contract opened at 17,590 yuan/mt today. Bulls took concentrated profits and exited, causing SHFE lead to fluctuate downward sharply. It found support at the 60-day moving average and finally closed at 17,335 yuan/mt, down 495 yuan/mt or 2.78%. The daily chart recorded a large bearish candlestick.
Affected by the broad decline in the nonferrous metals sector, SHFE lead prices came under pressure. Some waste lead-acid battery recycling enterprises, fearing further price drops, increased selling sentiment, and smelters in east China reported an increase in scrap battery arrivals today. However, some recyclers maintained expectations of a potential price rebound before the Chinese New Year, holding onto a wait-and-see attitude and continuing to stockpile. As lead prices weakened, secondary lead smelters generally widened their discounts to promote sales and actively sold secondary refined lead, which eased the tight supply of lead ingots and improved market liquidity. In the short term, lead prices are expected to remain under pressure from macro sentiment and continue their downward trend. Going forward, close attention should be paid to whether improved selling enthusiasm in the raw material sector persists, which could further expand the downside room for lead prices.
Data Source Statement: Except for public information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not as decision-making advice.
