Before the holiday, SHFE lead closed slightly lower. Under the supply-demand weakness pattern, attention should be paid to the implementation of production resumptions at smelters [Lead Brief Comment]

SMM June 18 news:

The most-traded SHFE lead 2607 contract opened at 16,450 yuan/mt intraday, fluctuated downward from the early session to the mid-session, hitting a low of 16,350 yuan/mt. It later recovered some losses and rebounded to move sideways in the 16,370-16,405 yuan/mt range, finally closing at 16,400 yuan/mt, recording a small bearish candlestick, down 70 yuan/mt or 0.43%. The last trading day before the Dragon Boat Festival holiday, compounded by disturbances from mid-year financial closing, led many enterprises to suspend shipments and settlements, with a strong wait-and-see sentiment prevailing in the market. Supply side, secondary lead smelters under maintenance were cutting or stopping production due to weak market conditions and raw material issues, while primary lead smelters faced tight ore supply. Some smelters saw production decline this week. As delivery-related matters gradually settled, the expected increase in lead ingot inventory after the holiday was weak. Overall, the trend of lead prices awaits tracking of actual production resumptions and operations.

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