SHFE Lead Moves Downwards After a Higher Opening, Expanding Losses

SMM January 13:

The most-traded SHFE lead 2602 contract opened at 17,365 yuan/mt. After opening, the price pulled back quickly. Although it rebounded slightly before noon, it came under pressure again in the afternoon due to bulls exiting, hitting a low of 17,270 yuan/mt. The price rebounded slightly towards the close and finally ended at 17,310 yuan/mt, down 130 yuan/mt or 0.75%. The daily chart formed a bearish candlestick.

Today, raw material offers from secondary lead smelters in mainstream regions held steady, with good arrivals of scrap batteries and suppliers showing increased willingness to sell. As lead prices pulled back, offers for primary lead cargoes self-picked up from production site declined, and some secondary lead smelters widened discounts for sales due to fear of falling prices. Downstream battery plants bought the dip, but overall transactions in the spot market remained sluggish. Lead prices are expected to maintain a fluctuating trend in the short term, and may gradually come under pressure after the delivery is completed.

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