Last Friday, bulls added positions while bears exited, LME lead rose 1.04% [SMM Lead Morning Brief]

SMM, July 6:

Last Friday, LME lead opened higher with a gap at $1,870.5/mt and drifted higher during the Asian session. Entering the European session, bulls added positions while bears exited, pushing LME lead up to $1,898/mt. It moved sideways in late trading and finally closed at $1,888/mt, up 1.04%.

Last Friday evening, the most-traded SHFE lead 2608 contract opened at a low of 15,885 yuan/mt, consolidated narrowly around the daily average, reaching a high of 15,965 yuan/mt during the session, and finally closed at 15,930 yuan/mt, up 0.28%.

Last week, amid a bearish capital frenzy, SHFE lead fell to a more than two-year low, widening losses for lead smelters and forcing secondary lead enterprises to cut or halt production again. Bearish capital then began to withdraw, and lead prices stopped falling and rebounded. This week, we need to focus on the purchasing trends of downstream enterprises. If destocking of lead ingot materializes, lead prices could continue to rebound; otherwise, caution is still warranted against the bearish capital that has not yet withdrawn.