During the day, SHFE lead surged violently, up 190 yuan/mt [SHFE Lead Brief Review]

SMM January 29:

The most-traded SHFE lead 2603 contract opened at 17,020 yuan/mt today. After brief consolidation in early trading, boosted by broad gains in nonferrous metals, SHFE lead climbed unilaterally to a high of 17,370 yuan/mt, then pulled back slightly and consolidated toward the session's close. It finally settled at 17,185 yuan/mt, up 190 yuan/mt or 1.12%, ending a four-day losing streak and forming a large bullish candlestick with a long upper shadow.

Spot market transactions for lead ingots remained sluggish today. Supply side, offers for primary lead cargoes self-picked up from production site widened their discounts further; secondary lead enterprises showed reduced enthusiasm in making offers, with some maintaining yesterday's discount levels and others halting sales to adopt a wait-and-see stance. Demand side, a few downstream battery enterprises started holidays early, while those still with procurement needs only restocked limited volumes. In addition, SHFE lead saw an unusual rise today. If prices remain high tomorrow, restocking willingness among downstream battery enterprises will be suppressed, while lead smelters will find it hard to widen discounts due to losses. Spot market trading atmosphere is expected to become more mediocre.

Data source statement: Except for publicly available information, other data are derived by SMM based on public information, market communication, and SMM's internal database model, for reference only and not constituting decision-making advice.