SMM January 26:
The most-traded SHFE lead 2603 contract opened at 17,190 yuan/mt during the day. After brief sideways movement at the beginning of the session, the contract plummeted due to long liquidation, hitting a low of 17,065 yuan/mt towards the close. It finally settled at 17,070 yuan/mt, down 25 yuan/mt or 0.15%, forming a small bearish candlestick.
Recently, the lead smelting industry has been in an overall loss-making situation. As a result, secondary lead smelters generally reduced their willingness to offer, while most primary lead smelters maintained discounts for sales. With the Chinese New Year approaching, raw material enterprises are facing successive holidays, and some suppliers chose to actively sell at high prices to recoup funds; however, some enterprises remained optimistic about the future market, maintaining a strong sentiment to hold back sales. SHFE lead is expected to continue its low-level sideways movement in the short term, and after downstream battery enterprises gradually start pre-holiday stockpiling, lead prices are expected to gain support and gradually recover.
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