Weak Consumption, Bears Increase Positions as SHFE Lead Fluctuates Downward [SMM Lead Morning Brief]

SMM April 13:

Overnight, LME lead opened at $1,926/mt, touched a high of $1,948/mt during the Asian session before declining to briefly test a low of $1,915/mt. It then moved sideways during the European session, ultimately closing at $1,930.5/mt, up 0.26%.

Overnight, the most-traded SHFE lead 2605 contract opened high at 16,690 yuan/mt. After the opening, bears increased positions and SHFE lead fluctuated downward, touching a low of 16,580 yuan/mt near the close, ultimately settling at 16,585 yuan/mt, down 0.6%.

Weakening lead consumption in China and inflows of imported lead became the main factors dragging down lead prices. As SHFE lead entered the delivery week, suppliers relocated inventory and shipped to delivery warehouses, converting it into visible inventory, which may put lead prices under pressure. Meanwhile, attention should be paid to the fulfillment of maintenance plans by secondary lead enterprises. If production cuts proceed as scheduled, lead prices may have the potential to rebound after testing lows.

Data source disclaimer: Data other than publicly available information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.