SHFE Lead Fluctuated Intraday and Closed Higher, LME Prices Underpinned the Market [Lead Futures Brief Comment]

SMM, June 3:

The most-traded SHFE lead 2607 contract opened at 16,705 yuan/mt during the session. Lead prices edged down in the morning session, then moved sideways within the range of 16,605-16,680 yuan/mt. The market continued to oscillate around the daily moving average. Approaching the end of the session, prices came under pressure and moved lower, with the price center shifting below the daily moving average. The contract ultimately closed at 16,635 yuan/mt, posting a bullish candlestick, up 35 yuan/mt or 0.21%. Currently, primary lead and secondary lead enterprises are resuming production successively, and lead ingot supply is rising steadily. Downstream consumption recovery pace remains slow, and social inventory destocking has been hindered, putting periodic pressure on lead prices. However, LME lead prices fluctuating at highs provided support, and overall expectations are that China's lead prices will continue to move sideways within a range.

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