SMM December 29:
The most-traded SHFE lead 2602 contract opened at 17,530 yuan/mt today, fluctuating at highs in early trading and touching a high of 17,645 yuan/mt. In the afternoon, affected by long position reductions, SHFE lead fluctuated downward, hitting a low of 17,415 yuan/mt. The KDJ line gap narrowed, and the contract finally closed at 17,490 yuan/mt, up 135 yuan/mt, a gain of 0.78%. This marked a five-day winning streak.
Lead prices showed an initial rise followed by a decline today. Raw material shortages persisted, leading to minor production cuts at some smelters. Demand side, battery producers were still in the year-end account closing and inventory counting phase. Additionally, following the implementation of the new national standard for EVs, the market and consumers are still in an adaptation period, slowing down the circulation of new batteries. Enterprises generally maintained a cautious attitude towards lead ingot procurement, mostly purchasing based on immediate needs. Overall, lead prices are expected to hover at highs before the New Year's Day holiday, while a risk of retreat after rapid rise post-holiday warrants caution.
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