Bear funds exerted downward pressure, with the most-traded SHFE lead contract fluctuating to close lower and recording a long upper shadow bearish candlestick [Lead Futures Brief Review]

SMM January 16:

The most-traded SHFE lead 2603 contract opened at 17,585 yuan/mt. Pressured by concentrated bear funds, SHFE lead fell sharply and strongly, hitting the intraday low of 17,380 yuan/mt before a slight rebound at the close, ending at 17,475 yuan/mt, down 75 yuan/mt or 0.43%. It formed a bearish candlestick with a long upper shadow.

Today, SHFE lead prices fell below the key 17,700 yuan/mt level, prompting secondary lead smelters to actively offer and widen discounts. However, downstream battery enterprises generally held a bearish outlook, further weakening purchase willingness, and spot market trading remained sluggish. On the other hand, due to environmental protection-related controls, lead smelters in north, central, and east China implemented production cuts to varying degrees. Some secondary lead enterprises halted production and started holidays early due to sluggish lead ingot sales and funding difficulties. Against this backdrop, suppliers' selling pressure eased slightly. If lead prices weaken further next week, downstream enterprises' purchase willingness is expected to gradually recover.

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