Lead Futures Stabilized While SHFE Lead Briefly Stopped Decline, Secondary Refined Lead Producers Held Prices Firm and Refrained From Selling, Essential Demand Flowed Back to Primary Lead Market [SMM Lead Morning Comment]

Overnight, LME lead opened at $1,952.5/mt. In the Asian session, it fluctuated downward to $1,949/mt. Entering the European session, it rose to a high of $1,967.5/mt before declining again, closing at $1,955/mt, down $3/mt, a decrease of 0.15%.

Overnight, the most-traded SHFE lead 2410 contract opened at 16,410 yuan/mt, initially declining to 16,345 yuan/mt before rebounding to a high of 16,545 yuan/mt. It eventually closed at 16,415 yuan/mt, up 40 yuan/mt, an increase of 0.24%.

Macro side, the US dollar index stabilized as the market awaited key inflation data and developments in the US election. Fundamentals side, expectations of maintenance at primary lead smelters were realized, and production and shipment enthusiasm among secondary lead smelters severely weakened. Many secondary refined lead producers held firm on prices and refrained from selling. In early September, orders from some downstream enterprises slightly improved, and essential procurement demand gradually increased compared to August. Further attention is needed to see if downstream operating performance boosts lead prices to halt the decline.