SMM August 27 report:
The SHFE lead 2610 contract opened at 16,120 yuan/mt today, moved sideways within the 16,100–16,140 yuan/mt range in the morning session, dipped to the day's low of 16,050 yuan/mt in the afternoon before consolidating and rebounding, and finally closed at 16,110 yuan/mt, down 10 yuan/mt or 0.06% from the previous trading day's closing price. Full-day trading volume was 58,006 lots, with open interest at 69,440 lots. The SMM #1 lead price remained flat today as SHFE lead consolidated at highs. Some primary lead enterprises entered maintenance, causing regional supply to tighten, and suppliers held prices firm on cargoes. After lead prices stabilized, downstream hedging sentiment eased, with inquiry and procurement gradually increasing; however, more import lead offers added to supply.
It is expected that SHFE lead will continue to consolidate at highs in the short term, with attention needed on maintenance progress and the arrival pace of imported lead.
