SHFE lead ends slightly higher intraday, short-term rebound strength needs to watch downstream destocking realization [Lead Futures Brief Review]

SMM July 6 news:

The SHFE lead 2608 contract opened at 15,940 yuan/mt during the day. In the morning session, the tug-of-war between longs and shorts was intense, with prices consolidating narrowly around the moving average in a range of 15,900-15,935 yuan/mt. After 10 o'clock, bears strengthened, and the market continued to drift lower, dipping to an intraday low of 15,845 yuan/mt. In the afternoon, funds gradually entered to support the market, and lead prices slowly recovered from the low. Prices edged higher in late trading, finally settling at 15,895 yuan/mt for the day, up 10 yuan/mt or 0.06%, forming a small bullish candlestick. In the prior week, bears aggressively pressured the futures market, sending SHFE lead prices plummeting to a two-year low. Losses in the smelting sector widened further, and many secondary lead smelters were forced to cut or halt production again. Against this backdrop, earlier bears began to take profits and exit, driving lead prices to stop falling, stabilize, and rebound. This week, the key focus is on the actual procurement pace of downstream battery plants. If sustained destocking of lead ingots emerges, it will support an upward move in lead prices; however, if inventories continue to accumulate, bears that have not completely exited still pose a risk of pushing prices down again.

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