SMM, June 29:
The most-traded SHFE lead 2608 contract opened at 16,190 yuan/mt in intraday trading, moved sideways in the range of 16,150-16,215 yuan/mt during the morning session, softened slightly in the afternoon to a low of 16,135 yuan/mt, then consolidated and rebounded in the closing session, surging to a high of 16,260 yuan/mt before finally closing at 16,230 yuan/mt, posting a small bearish candlestick, down 50 yuan/mt, or 0.31%. This week, an increasing number of secondary lead smelters curtailed or halted production, while primary lead smelters in Henan and Yunnan saw concentrated production resumptions after maintenance, driving operating rates higher WoW; supply was mixed. At month-end, major downstream plants conducted mid-year inventory counts and closed books, causing procurement to stall and orders to be largely deferred to July. Fundamentals provided weak support, while secondary lead smelters held prices firm and held back from selling, showing limited willingness to offer shipments. Secondary refined lead ex-factory prices carried a premium of 0-50 yuan/mt over the SMM #1 lead average price, remaining in a prolonged inversion against primary lead. The sentiment among smelters to hold prices firm helped defend the bottom of lead prices to some extent. In the near term, lead prices are expected to be primarily in the doldrums.
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