SMM, August 28:
The SHFE lead 2610 contract opened at 16,275 yuan/mt intraday, quickly rallied to 16,335 yuan/mt after the open, then consolidated and pulled back. It traded within the 16,250–16,300 yuan/mt range during the day and finally closed at 16,245 yuan/mt, up 135 yuan/mt from the previous trading day's close, a gain of 0.84%. During the day, it broke above the upper Bollinger Band and then pulled back, closing below the band. The daily candlestick was a bullish candle with a long upper shadow, showing clear overhead pressure. In the short term, lead prices were pressured by four factors: rising downstream wait-and-see sentiment, thinner high-price trading, secondary lead shipments at widening discounts, and loose imported lead circulation. However, limited primary lead supply and suppliers holding prices firm provided bottom support for the market. SHFE lead is expected to continue to consolidate at highs in the short term. Subsequent focus should be on spot transaction follow-through, the pace of imported lead arrivals, the sustainability of suppliers holding prices firm, and LME lead price movements.
Data source statement: All data other than public information are processed by SMM based on public information and market communication, using SMM's internal database models. They are for reference only and do not constitute decision-making advice.
