SHFE Lead Recorded an Inverted V-Shaped Intraday Trend, Marking a Four-Day Losing Streak [Futures Lead Brief Review]

SMM January 21:

The most-traded SHFE lead 2603 contract opened at 17,045 yuan/mt. It fluctuated upward in early trading, experienced a slight correction around midday, then strengthened again, hitting a high of 17,160 yuan/mt during the session. The contract gave back some gains toward the close, forming an "inverted V" pattern. It finally closed at 17,115 yuan/mt, down 110 yuan/mt or 0.64%, marking a four-day losing streak.

Spot lead prices fell below the 17,000 yuan/mt mark today, with the discounts for both primary lead and secondary lead against futures narrowing slightly. Inquiries from downstream battery producers increased modestly, but overall market trading remained sluggish. Due to the decline in lead prices, losses at secondary lead smelters widened, prompting them to lower their raw material purchase offers. Scrap battery suppliers, fearing further price drops, sold actively, utilizing smelters' price protection windows, while secondary lead enterprises took the opportunity to restock raw materials ahead of the Chinese New Year. If lead prices continue to weaken in the short term, downstream battery companies may restock at lower levels, providing some support to the spot market.

Data Source Statement: Except for publicly available 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.