Bears Exited, SHFE Lead Stopped Falling and Stabilized [Lead Futures Brief Review]

SMM January 9:

The most-traded SHFE lead 2602 contract opened at 17,260 yuan/mt today. It consolidated near the low of 17,235 yuan/mt in early trading, then rose rapidly as bears exited the market. After a brief pullback in the afternoon session, it climbed again to hit the day's high of 17,400 yuan/mt, finally closing at 17,355 yuan/mt, up 20 yuan/mt or 0.12%. The daily chart formed a small bullish candlestick.

Although lead prices showed signs of stabilizing after yesterday's sharp decline, some secondary lead smelters remained cautious about the subsequent trend and had lowered their raw material purchase offers accordingly. Scrap battery suppliers generally adopted a wait-and-see approach, with their willingness to sell weakening compared to yesterday. Downstream battery producers' procurement demand remained sluggish this week, prompting most secondary lead smelters to widen discounts to boost sales. Although lead prices are expected to have some room for a rebound before next week's delivery date, caution is still warranted as weak downstream procurement may lead to an accumulation of lead ingot finished product inventories, which could weigh on prices.

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