Multiple Positive Factors Outside China Overlapped, LME Lead Rose to a 2-Month High [SMM Lead Morning Brief]

SMM, May 7:

During the overnight session, LME lead opened at $1,972/mt. Amid relatively easing tensions in the Middle East and the ongoing impact of a lead smelter accident outside China, LME lead fluctuated upward throughout the day, reaching an intraday high of $1,989/mt, a new high since late February this year. However, during the night session, LME lead lacked upward momentum and gave back some gains, ultimately closing at $1,973/mt, up 0.03%.

During the overnight session, the most-traded SHFE lead 2606 contract opened at 16,970 yuan/mt. As lead ingot inventory in China continued to accumulate and the spread between futures and spot prices widened, SHFE lead pulled back quickly after the open. For most of the latter half of the session, it consolidated between 16,850-16,880 yuan/mt, ultimately closing at 16,840 yuan/mt, down 0.18%. Its open interest stood at 65,481 lots, a decrease of 5,756 lots from the previous trading day.