Consumption Performance Overall Satisfactory, Lead Futures Maintain Sideways Movement [SMM Lead Morning News]

SMM January 26:

Last Friday, LME lead opened at $2,027/mt, fluctuated downward during the Asian session, and rose first then fell during the European session. After touching a high of $2,038/mt, it plunged, explored a low of $2,018/mt toward the close, and finally settled at $2,035/mt. On Friday evening, the most-traded SHFE lead 2603 contract opened at 17,170 yuan/mt. At the beginning of the session, it fluctuated downward to a low of 17,090 yuan/mt, then fluctuated upward to a high of 17,215 yuan/mt, and finally settled at 17,145 yuan/mt, up 0.29%, forming a doji bearish candlestick.

After lead prices fell below the 17,000 yuan mark last week, secondary lead profits turned from positive to negative, prompting some secondary lead enterprises to plan for early maintenance or holidays. Supply tightened relatively, while primary lead enterprises resumed operations after maintenance, resulting in an overall supply change that largely offset. With less than one month to go before the Chinese New Year, attention should be paid to downstream enterprises' expectations for Chinese New Year stockpiling. However, due to weak consumption in the largest lead consumption sector—the e-bike lead-acid battery market—stocking demand before the holiday is expected to be limited. Be cautious of further downside risks in lead prices.

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