SMM Jan. 23:
The most-traded SHFE lead 2603 contract opened at 17,130 yuan/mt. After rising to a high of 17,175 yuan/mt in early trading, it turned sharply lower due to concentrated long liquidation, hitting a low of 17,066 yuan/mt, before stabilizing and fluctuating rangebound. It finally closed at 17,095 yuan/mt, down 45 yuan/mt, or 0.26%, forming a small bearish candlestick.
SHFE lead has been in the doldrums recently, and secondary lead smelters' profits have turned negative, significantly dampening production enthusiasm. Meanwhile, secondary lead discounts have narrowed, and downstream battery enterprises showed weak purchase willingness, preferring primary lead in the same price range. Currently, several enterprises in north China have scheduled early maintenance shutdowns due to deepening losses and difficulties in raw material recycling. In the short term, lead ingot supply has tightened somewhat, coupled with downstream battery enterprises gradually starting stockpiling ahead of the Chinese New Year, which is expected to provide some support to lead prices.
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