The Most-Traded SHFE Lead Contract Center Shifted Lower, Was Under Pressure Intraday, and Recorded Three Consecutive Bearish Candlesticks [SHFE Lead Brief Review]

SMM Jun 8:

The most-traded SHFE lead 2607 contract opened at 16,392 yuan/mt intraday. It edged down slightly early in the session, then moved sideways below the average price line. The tug-of-war between longs and shorts intensified, and lead prices came under pressure in the afternoon, quickly sliding to a low of 16,305 yuan/mt. In late trading, although there was a slight recovery, the rebound was limited. It finally closed at 16,340 yuan/mt, posting a three-day winning streak, down 65 yuan/mt or 0.40%. This week, operating rates at secondary lead smelters rebounded somewhat, driving the release of incremental market supply. Meanwhile, as the delivery date approached, current lead ingot inventory also rose compared to early June. Against the backdrop of continuously weakening lead prices, secondary lead enterprises actively lowered scrap battery procurement prices, further weakening the support from raw material costs. Combined with sluggish downstream consumption, lead prices are expected to be under pressure in the short term.

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