Tug-of-war between longs and shorts intensified, SHFE lead showed a "W-shaped" volatile trend during the day [Futures Lead Brief Review]

SMM January 15:

The most-traded SHFE lead 2603 contract opened higher with a gap at 17,620 yuan/mt during the day. At the beginning of the session, SHFE lead briefly came under pressure and pulled back. After touching the 17,500 yuan/mt level, it stabilized and rebounded, fluctuating and rising all the way. Before noon, SHFE lead pulled back again, but regained momentum in the afternoon. Overall, it showed a "W"-shaped pattern with considerable fluctuations. It finally closed at 17,425 yuan/mt, up 165 yuan/mt, or 0.95%, marking two consecutive gaining sessions.

Lead prices continued their upward trend today, boosting the willingness to sell among lead smelters, with enthusiasm higher than yesterday. However, procurement sentiment among downstream battery enterprises slowed down, with only some companies selectively buying the dip. Overall trading in the spot market was sluggish. Recently, secondary lead smelters in many domestic regions successively increased production or resumed production. However, sluggish end-use consumption affected the operating rates of battery enterprises, and their demand for lead ingots was expected to decline accordingly. Lead ingot supply was expected to further loosen next week, with caution warranted against a potential weakening in lead price trends.

Data source statement: Except for publicly available information, other data were processed by SMM based on public information, market communication, and relying on SMM's internal database model, for reference only and do not constitute decision-making advice.