Geopolitical Tensions Outside China Showed Slight Easing, Lead Futures in and Outside China Maintained Strong Upward Momentum [SMM Lead Morning Brief]

SMM April 16:

Overnight, LME lead opened at $1,936.5/mt and fluctuated upward during the Asian session, with a low of $1,935.5/mt. It continued to rise firmly into the European session, ultimately closing at $1,966.5/mt, up 1.65%.

Overnight, the most-traded SHFE lead 2605 contract opened higher with a gap at 16,750 yuan/mt, briefly touching a low of 16,745 yuan/mt before fluctuating upward to a high of 16,860 yuan/mt, and ultimately closing at 16,840 yuan/mt, up 1.05%.

The spot lead market saw subdued supply and demand, with downstream battery producers receiving weak orders and showing poor enthusiasm for lead ingot procurement. Primary lead smelters maintained relatively stable production, but secondary lead enterprises saw declining operating rates due to loss pressures. In addition, geopolitical issues outside China persisted and remained volatile. If a successful ceasefire is reached between the US and Iran, it would have a positive impact on base metals; otherwise, lead prices will continue to consolidate.

Data source disclaimer: Data other than publicly available information is derived from public information, market communication, and SMM's internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice.