The Most-Traded SHFE Lead 2604 Contract Formed a Doji, the Weak Supply-Demand Pattern Remained Unchanged, and It Was Likely to Maintain Sideways Movement in the Short Term [Brief Commentary on SHFE Lead]

SMM News on March 5:

The most-traded SHFE lead 2604 contract opened at 16,775 yuan/mt today. After a slight pull back in early trading, it fluctuated rangebound around 16,825 yuan/mt, with the tug-of-war between longs and shorts relatively stalemated. During the session, lead prices quickly dipped, and although they rebounded slightly toward the close, the overall center gradually moved lower. It eventually closed at a low of 16,770 yuan/mt, forming a doji, down about 65 yuan from the previous trading day’s settlement price, a decline of about 0.39%. Secondary lead smelters postponed resuming production to mid-to-late March due to poor profitability. After the holiday, scrap collection by recyclers remained tight, and raw material shortages at smelters provided cost support. Downstream battery producers mainly focused on digesting pre-holiday inventory, making small-lot purchases for rigid demand. The dual weakness in supply and demand in the lead market continued, and lead price fluctuations are expected to be limited in the short term.

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