The SHFE lead 2608 contract swung wildly during the day and eventually recorded a doji line [Lead Review]

SMM July 7 News:

The most-traded SHFE lead 2608 contract opened at 15,910 yuan/mt during the day, drifted lower early in the session, dipped to an intraday low of 15,830 yuan/mt, consolidated and recovered after support at low levels emerged, continued to rebound gradually in the afternoon, surged again near the end to approach the opening level, traded widely within the 15,830-15,905 yuan/mt range throughout the day, and finally closed at 15,905 yuan/mt, edging down 5 yuan/mt or 0.03% for the day. Lead prices consolidated on a subdued note recently, downstream producers only purchased on demand at low prices, warehouse withdrawals increased in selected warehouses, and social inventory pulled back slightly in the short term. However, the weak demand in the battery off-season did not improve, and downstream procurement demand was difficult to expand; coupled with the approaching delivery of the 2607 contract, suppliers transferred large volumes of goods into delivery warehouses, and inventories in many social warehouses had increased for two consecutive weeks. On the supply side, primary and secondary lead smelters underwent maintenance and production cuts this week, tightening supply in the short term; but in-factory inventory at smelters accumulated noticeably, and with only 7 trading days left until delivery, subsequent inventory releases may continue to pressure inventory and futures prices, leaving the market still facing downward risk.

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