SHFE lead edges down 0.03% with a long upper shadow, consolidation at highs remains intact [Lead Futures Brief Comment]

SMM, September 2:

The SHFE lead 2610 contract opened at 16,190 yuan/mt during the day, briefly shot up to an intraday high of 16,240 yuan/mt in early trading before consolidating lower, then fluctuated repeatedly within the 16,135-16,195 yuan/mt range. In the afternoon, the price center edged slightly lower, eventually closing at 16,155 yuan/mt, down 5 yuan/mt or 0.03% from the previous trading day's closing price. The daily candlestick retreated after a rapid rise, forming a small bearish candlestick with a long upper shadow. Trading volume was 51,918 lots, and open interest stood at 64,678 lots. In the spot market, tight supply of primary lead and suppliers holding prices firm while holding back from selling provided support on the downside, but discounts on secondary lead diverted demand and downstream buyers remained on the sidelines, leaving transactions sluggish. Upside momentum was limited. SHFE lead is expected to continue to consolidate at highs in the short term, with longs and shorts in a stalemate and direction yet to be determined. Attention should be paid to LME sentiment catalysts and actual downstream rigid demand transactions.

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