High Uncertainty in the Middle East: LME Lead Ends Four-Day Winning Streak [SMM Lead Morning Update]

SMM July 14 News:

Overnight, LME lead opened at $1892.5/mt. Due to geopolitical risks outside China, risk-off sentiment heightened in the market, and LME lead quickly plunged to $1873/mt after the opening. Subsequently, from the Asian session to the European session, LME lead traded in the range of $1870–1880/mt for an extended period, until it fell again toward the late-night close, hitting a session low of $1866.5/mt, a nearly half-month low. Finally, LME lead closed at $1873/mt, down 1.32%.

Overnight, the most-traded SHFE lead 2608 contract opened at 15920 yuan/mt. At the beginning of the session, a large number of market positions were rolled over for contract rollover, and SHFE lead moved to around 15940 yuan/mt. However, due to lead ingot inventory buildup, SHFE lead continued to drift lower, with a session low of 15845 yuan/mt, finally closing at 15860 yuan/mt, down 0.38%; open interest was 65,368 lots, down 5,583 lots from the previous trading day. In addition, the SHFE lead 2608 contract saw a large rollover to the 2609 contract, and attention should be paid to the contract rollover of the most-traded contract.