SHFE Lead in the Doldrums, KDJ Lines Converging [Lead Futures Brief Review]

SMM February 4:

The most-traded SHFE lead 2603 contract opened at 16,605 yuan/mt, fluctuating rangebound between 16,550-16,640 yuan/mt during the day, touching a low of 16,540 yuan/mt. It finally closed at 16,590 yuan/mt, down 50 yuan/mt, a decrease of 0.30%. It recorded a four-day losing streak, with the KDJ lines tending to converge.

Spot lead ingot market trends diverged today; traders generally sold at a discount, while smelters held relatively firm offers due to low prices and reluctance to sell. To reduce losses, secondary refined lead smelters shifted their offers from discounts to premiums. Downstream battery enterprises had weak purchase willingness, mostly executing long-term contracts. Approaching the Chinese New Year holiday, market trading was sluggish, and upstream and downstream enterprises successively entered the holiday period. Lead prices are expected to remain under pressure and operate at low levels.

Data source statement: Except for public 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.