SHFE Lead Remained in the Doldrums Throughout the Day, Ending Lower After Sideways Trading at Lows in Late Trading [Lead Brief Comment]

SMM July 2:

Intraday, the most-traded SHFE lead 2608 contract opened at 15,811 yuan/mt, saw small fluctuations and edged higher early in the session, but failed to hold above the average price line. It subsequently consolidated and pulled back, dipping to 15,745 yuan/mt before slightly rebounding. In the latter half of the session, it moved sideways weakly in the 15,745-15,760 range, finally closing at 15,765 yuan/mt, recording a bearish candlestick. It fell by nearly 170 yuan/mt, a decline of 0.9%. The primary lead market showed divergence, with production cuts and smelters undergoing maintenance and resuming production coexisting; secondary lead output weakened, and downstream battery manufacturers also cut production, weighed down by sluggish orders, leaving the industry currently with both supply and demand weak. Combined with high LME lead inventories and a continuous inflow of low-grade lead suppressing futures, short-term lead prices are expected to remain in the doldrums.

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