Bears Added Positions, Lead Prices Fell Under Pressure [SMM Lead Morning Update]

SMM July 24 news:

Overnight, LME lead opened at $1,892/mt, swung wildly during Asian trading hours, touched a high of $1,910/mt during European trading hours, then gave back all gains near the close as bears added positions, hitting a low of $1,886/mt, before finally settling at $1,887/mt, down 0.32%.

Overnight, the most-traded SHFE lead 2609 contract opened high at 15,910 yuan/mt, then drifted lower as bulls reduced positions, dipping to a low of 15,755 yuan/mt near the close, and finally settled at 15,765 yuan/mt, down 0.88%.

As we enter late July, the July lead ingot long-term contracts are about to expire, and medium and large downstream enterprises are waiting for the new monthly long-term contracts to take effect, leading to reduced interest in lead ingot procurement; meanwhile, some downstream enterprises plan to shut down for summer holidays due to high temperatures, further dampening procurement demand. Next week, primary lead enterprises in central China are about to undergo maintenance, while new secondary lead capacity in east China is in trial production and ramping up, leaving both reducing and increasing factors on the supply side. If lead consumption remains sluggish, the destocking of lead ingot social inventory will be difficult to sustain, and a potential return to inventory buildup could weigh on lead prices going forward.