Upward Momentum Insufficient, SHFE Lead Weakens Again After Intraday Rebound [Futures Lead Brief]

SMM January 20:

The most-traded SHFE lead 2603 contract opened at 17,250 yuan/mt today. It edged down slightly at the beginning of the session, hit a bottom of 17,180 yuan/mt, then stabilized and rebounded, touching the day's high of 17,275 yuan/mt during the session. However, upward momentum was insufficient, and prices pulled back again towards the close. It finally closed at 17,225 yuan/mt, up 40 yuan/mt or 0.23%, marking a third consecutive day of decline.

The decline in SHFE lead slowed down today, with overall fluctuations being relatively small. Downstream battery enterprises held bearish expectations for the future market. Some lead smelters expanded their offer discounts to promote sales. However, downstream enterprises had multiple sourcing options, mostly preferring spot primary lead cargoes self-picked up from production site, leading to a further decline in secondary refined lead sales. Additionally, lead ingot transportation pace slowed down in some regions such as Anhui and Henan due to blizzard conditions. Social inventory of lead ingots is expected to accumulate further after the blizzard ends and transportation resumes, which will be a major factor suppressing a rebound in lead prices.

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