Market sentiment stays cautious, lead prices run in the doldrums [SMM Lead Morning Report]

SMM June 11 News:

Overnight, the LME lead 3M contract opened at $1,981/mt, hitting an intraday high early in the session before coming under pressure and pulling back. The price fluctuated downward during the Asian session, with the center gradually shifting lower. Entering the European session, bulls struggled to rebound, as selling pressure above continued to emerge. The market maintained a fluctuating downward trend, dipping to an intraday low of $1,960/mt. Toward the close, it stopped falling slightly and consolidated, eventually settling at $1,962.5/mt, registering a small bearish candlestick, down $18.5/mt, a decline of 0.93%.

Overnight, the SHFE lead 2607 contract opened at 16,115 yuan/mt. Early in the session, the price briefly rose to touch an intraday high of 16,140 yuan/mt before the bullish momentum faded. The market fluctuated downward overall, with prices gradually pulling back to an intraday low of 16,060 yuan/mt. Near the end of the session, it rebounded slightly, eventually settling at 16,100 yuan/mt, registering six consecutive bearish candlesticks, down 30 yuan/mt, a decline of 0.19%.

Sentiment-wise, renewed geopolitical tensions broadly weighed on the nonferrous metals sector. On the demand side, performance was sluggish, with end-use consumption recovery falling short of peak-season expectations and downstream enterprises adopting a cautious procurement stance. On the inventory front, LME lead and domestic lead ingot inventories continued to pull back, consolidating support at lows for lead prices. Additionally, secondary lead smelters, constrained by costs, held prices firm and held back from selling, further underpinning prices. Currently, secondary lead enterprises in east China are experiencing both production suspensions and resumptions, with bullish and bearish factors intertwined, and short-term lead prices are expected to maintain a fluctuating trend.