LME Lead Saw Wild Swings, SHFE Lead Opened Higher but Pulled Back under Pressure, Lead Market Overall Remained in the Doldrums [SMM Lead Morning Brief]

SMM, April 29:

Overnight, LME lead opened at $1,961.5/mt, briefly touched $1,963/mt early in the session, then fluctuated and pulled back during the Asian session. Entering the European session, prices once rebounded with fluctuations but came under pressure again, dipping to a low of $1,949.5/mt before recovering somewhat. Prices weakened again near the close, ultimately settling at $1,951.5/mt, down 0.61%.

Overnight, the most-traded SHFE lead 2606 contract opened higher with a gap at 16,735 yuan/mt. Early in the session, SHFE lead prices moved sideways within 16,720-16,755 yuan/mt, touching a high of 16,755 yuan/mt before pulling back under pressure, displaying an overall fluctuating downward trend to a low of 16,700 yuan/mt. Prices rebounded slightly near the close, ultimately settling at 16,705 yuan/mt, up 10 yuan/mt or 0.06%. Open interest stood at 65,269 lots, an increase of 1,770 lots from the previous trading day.

Consumption side, with the Labour Day holiday approaching and battery manufacturers' earlier restocking demand having been met on a phased basis, downstream enterprises showed weak follow-through on just-in-time procurement, with overall consumption remaining subdued. Supply side, constrained by tight raw material inventories, some secondary lead smelters implemented production cuts or halted operations, and regional secondary lead spot cargo continued to tighten. Ex-China, lead ingot destocking continued, while China's primary lead ingot social inventory also showed a slight destocking trend. The current lead market featured a prominent pattern of weakness in both supply and demand, and lead prices were expected to maintain a fluctuating trend in the near term.