SMM January 27:
Overnight, LME lead opened at $2,034/mt, fluctuated below the daily average line during the Asian session. Entering the European session, due to a weaker US dollar index, LME lead released pressure and climbed to $2,067.5/mt, but insufficient support at high levels led to a pullback, erasing most of the gains. It finally closed at $2,036/mt, up $1/mt or 0.05%, forming a small bullish candlestick with a long upper shadow.
Overnight, the most-traded SHFE lead 2603 contract opened at 17,170 yuan/mt, briefly rose to a high of 17,165 yuan/mt at the beginning of the session, then fluctuated downward due to the drag from LME lead's decline and weak spot fundamentals. It touched a low of 17,055 yuan/mt near the close before a slight rebound. The contract finally closed at 17,085 yuan/mt, down 10 yuan/mt or 0.06%, marking two consecutive bearish sessions in a row.
Primary lead side, production at primary lead enterprises resumed last week, and supplies re-entered the circulation market after delivery. Spot discounts are expected to remain difficult to change this week. Secondary lead side, shrinking profits dampened smelters' production enthusiasm, and production cuts have emerged in north China. Spot discounts for secondary refined lead are expected to maintain or narrow slightly this week. On the lead consumption side, the lead-acid battery market saw weak pre-harvest consumption before the Chinese New Year, with large enterprises maintaining some stockpile levels. Only some small and medium-sized enterprises began planning to stockpile before the holiday, providing limited support to lead prices.
Data source statement: All other data, except for public information, is processed by SMM based on public information, market communication, and SMM's internal database model. It is for reference only and does not constitute decision-making advice.
