SMM January 22:
The most-traded SHFE lead 2603 contract opened at 17,115 yuan/mt today. After brief consolidation in early trading, SHFE lead came under pressure and pulled back, continuing to fluctuate lower throughout the session. It hit a low of 17,030 yuan/mt, marking the lowest level in nearly twenty trading days. In the afternoon, market sentiment shifted as short-covering drove prices to gradually rebound, turning the intraday trend from loss to gain and forming a distinct "V-shaped" pattern. It finally closed at 17,140 yuan/mt, up 25 yuan/mt or 0.15%, ending a four-day losing streak and recording a small bullish candlestick.
SHFE lead stopped falling and stabilized today, with downstream inquiries showing increased willingness. Some small and medium-sized enterprises already demonstrated pre-holiday stockpiling intentions. In terms of market transaction structure, secondary refined lead quotations remained relatively firm due to narrowing discounts, while lead ingot transactions were still dominated by primary lead. Additionally, Hebei, Shandong, and other regions issued orange alerts for heavy pollution weather again, which were expected to impose certain constraints on local lead ingot production. As a result, social inventory pressure for lead ingots was likely to ease slightly in the short term, providing support for SHFE lead prices.
Data Source Statement: Except for publicly available information, other data were processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not constituting decision-making advice.
