Non-Ferrous Sector Broadly Declined Combined with Increased Lead Ingot Supply, SHFE Lead Futures Center Shifted Downward [Lead Futures Brief Commentary]

SMM, June 4:

The most-traded SHFE lead 2607 contract opened at 16,500 yuan/mt during the session. The market was in the doldrums throughout the day, with prices persistently under pressure below the intraday moving average. Prices dipped to a low of 16,390 yuan/mt during the session before rebounding slightly near the close, ultimately settling at 16,435 yuan/mt, down 210 yuan/mt or 1.26% for the day, forming a bearish candlestick. Dragged down by the collective weakness across non-ferrous metals, SHFE lead futures were under pressure and trended weak during the session. Currently, both primary lead and secondary lead supply continued to increase, suppressing lead prices from the supply side. Coupled with sluggish recovery in end-use demand, SHFE lead prices were under pressure. However, scrap battery raw material costs provided bottom support, effectively limiting the room for deeper declines. In the short term, lead prices are expected to remain in the doldrums.

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