The most-traded SHFE lead contract fluctuated considerably and closed slightly higher intraday [Lead Futures Review]

SMM Jan. 14:

The most-traded SHFE lead 2602 contract opened at 17,430 yuan/mt today. In early trading, SHFE lead fluctuated considerably between 17,420-17,490 yuan/mt, hitting a high of 17,485 yuan/mt during the session. In the afternoon, the fluctuation range widened further, and the contract touched the day's low of 17,330 yuan/mt during the closing session, finally closing at 17,385 yuan/mt, up 25 yuan/mt or 0.14%. The daily chart formed a bullish candlestick.

As the delivery date approaches, coupled with strong sentiment among downstream battery producers to buy the dip, primary lead and secondary lead smelters generally reduced their enthusiasm for offering prices, mostly adopting a wait-and-see approach ahead of the delivery. After the delivery ends, the flow of lead ingots in the spot market is expected to increase. In addition, a large secondary lead enterprise in east China is expected to resume production, and some enterprises in central China are increasing production due to smooth arrivals of scrap batteries and the signing of long-term contracts with downstream consumers. Consequently, the supply pressure on lead ingots is expected to gradually become more prominent. Under the combined influence of the above factors, the upside room for lead prices is expected to be constrained, and the risk of a price pullback needs to be watched.

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 do not constitute decision-making advice.