The most-traded SHFE lead contract oscillated around the moving average, weakened in the afternoon and closed lower [Lead Futures Review]

SMM June 12 News:

The most-traded SHFE lead contract opened at 16,080 yuan/mt during the session, swinging wildly around its daily moving average in early trading within a range of 16,025–16,125 yuan/mt; fluctuations narrowed in the afternoon, with prices pulling back below the moving average and ultimately settling at 16,055 yuan/mt, down 165 yuan/mt or 1.02%, forming a small bearish candlestick. Lead prices were pressured by bears today, with the futures fluctuating downward. The downstream sector has now entered the traditional consumption off-season. Battery enterprises are in the midst of semi-annual settlement and inventory counting, which will further weaken their purchase willingness going forward, making it difficult for the demand side to provide support for lead prices. The supply side presented a tug-of-war between longs and shorts: some secondary lead smelters planned to cut production due to losses and raw material inventory shortages, while certain secondary lead smelters had production resumption plans for mid-June. Meanwhile, several primary lead smelters in China remained in maintenance. On balance, lead prices are expected to largely remain in the doldrums in the near term.

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