Precious Metals Decline Drives SHFE Lead to Hit a Nearly 13-Month Low [Lead Futures Brief]

SMM February 2:

The most-traded SHFE lead 2603 contract opened at 16,900 yuan/mt. At the beginning of the session, affected by the sharp decline in precious and non-ferrous metals, SHFE lead fluctuated downward. In the afternoon, it fell sharply again, hitting a low of 16,400 yuan/mt, refreshing the lowest level in nearly 13 months, before a slight rebound in late trading. It finally closed at 16,680 yuan/mt, down 185 yuan/mt, a decrease of 1.10%, forming a long lower shadow bearish candlestick.

Lead prices remained weak today, once falling to a 13-month low, dragging down spot market trading. In terms of supply, primary lead suppliers actively lowered their offers to sell at a discount due to the need for funds before the Chinese New Year. Meanwhile, secondary lead smelters saw their willingness to sell significantly decrease as losses per ton approached 400 yuan, resulting in scarce market offers. On the demand side, downstream battery enterprises had basically completed pre-holiday stockpiling last week, leading to generally weak inquiry and procurement enthusiasm today. The spot market continues to see weak supply and demand. If lead prices remain under pressure, smelters' willingness to sell is expected to further drop to a freezing point.

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