SHFE and LME Retreat After Rapid Rise, Lead Prices Continue to Weaken [SMM Lead Morning News]

SMM, June 10 –

Overnight, the LME lead 3M contract opened at $1,991/mt. During the Asian session, the price edged down slightly then fluctuated and recovered. In the European session, it touched a high of $2,001.5/mt. After hitting the high, selling pressure from above was released, and the market quickly turned downward. During the session, it dipped to $1,975/mt. At the close, the price underwent a slight correction and finally settled at $1,981/mt, down $7.5/mt, a decline of 0.38%. Overnight, the SHFE lead 2607 contract opened at 16,190 yuan/mt. Initially after opening, the price slightly corrected. Then, short-term buying pushed the price slightly higher, reaching a high of 16,195 yuan/mt for this session. After the high, bulls lacked momentum to sustain, bears gradually took control, and the futures fluctuated downward. The price declined step by step, touching a low of 16,075 yuan/mt, and finally settled at 16,095 yuan/mt, recording a five-day losing streak, down 75 yuan/mt, a decline of 0.46%.

Demand side, end-use consumption is weak, the peak season recovery has fallen short of expectations, and downstream stockpiling is cautious. Lead ingot inventory side, destocking is weak, inventories are gradually stabilizing, and expectations of inventory buildup are rising. Sentiment side, the most-traded SHFE lead contract has recorded a five-day losing streak, short positions are gradually increasing, and bearish sentiment is dominating in the short term. However, amid the sustained decline in lead prices, secondary lead smelters are holding prices firm and holding back from selling due to losses, coupled with cost support from scrap batteries below, providing some phased support to limit the downside room for lead prices.