LME Lead Plunged Overnight and Closed Lower, SHFE Lead Consolidated at Lows [SMM Lead Morning Commentary]

SMM News, March 20:

Overnight, LME lead opened at $1,911/mt. During the 9:00–12:00 session, LME lead fluctuated rangebound within $1,906–1,915/mt, holding up well overall and touching a high of $1,915.5/mt. After 12:00, LME lead turned into a unilateral downward trend, plunging to a low of $1,872.5/mt. During the night session, LME lead bottomed out, and by the close it fluctuated higher to repair losses to the $1,895–1,898/mt range, finally closing at $1,897/mt, down $16/mt, or 0.84%.
Overnight, the most-traded SHFE lead 2605 contract opened at a low of 16,300 yuan/mt. In early trading, SHFE lead fluctuated upward and touched a high of 16,480 yuan/mt, then dropped back slightly and fluctuated rangebound within 16,395–16,460 yuan/mt. It finally closed at 16,435 yuan/mt, posting a small bullish candlestick, up 20 yuan/mt, or 0.12%.

Yesterday, SHFE lead pulled back. Suppliers of primary lead showed average willingness to ship, while smelter quotes remained stable; supply in the secondary lead market was relatively ample, and smelters held prices firm on shipments, with overall transactions poor. Downstream battery plants maintained full production, mainly purchasing for rigid demand and long-term contracts, while spot order transactions were mediocre. SMM expects lead prices to remain in the doldrums with fluctuations in the short term.