The supply-demand weakness pattern persists, with SHFE lead maintaining sideways movement [Lead Futures Brief Review]

SMM February 26:

The most-traded SHFE lead 2604 contract opened at 16,790 yuan/mt, and due to weak downstream consumption coupled with slow resumption of smelters, the market exhibited a supply-demand weakness pattern. SHFE lead fluctuated rangebound around the 16,775 yuan/mt level, briefly touching a high of 16,805 yuan/mt, and finally closed at 16,790 yuan/mt, recording a small bullish candlestick. It rose by 55 yuan/mt, a gain of 0.33%. Overall downstream demand remains weak and is unlikely to improve significantly in the near term. Coupled with the fact that refined lead supply has not yet recovered collectively and recyclers have limited raw material supply, SMM expects SHFE lead to continue its sideways movement in the short term.

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