LME Lead Pulled Back After Hitting a 2-Month High, with Focus on Subsequent Macro Changes [SMM Lead Morning Brief]

SMM, May 8:

Overnight, LME lead opened at $1,977/mt. Throughout the day, LME lead continued the previous day's upward fluctuation, and coupled with lead ingot destocking outside China, LME lead reached a high of $1,990/mt during the European session, again hitting a new high since late February this year. However, Middle East tensions resurfaced during the night session, and non-ferrous metals generally pulled back. LME lead reversed course and gave back some gains, ultimately closing at $1,977.5/mt, up 0.23%.

Overnight, the most-traded SHFE lead 2606 contract opened at 16,825 yuan/mt. Production cuts on the domestic supply side and the consumption off-season counterbalanced each other, with bulls and bears locked in a stalemate during the session. SHFE lead fluctuated between 16,775-16,800 yuan/mt for an extended period before ultimately closing at 16,785 yuan/mt, down 0.36%. Open interest stood at 65,576 lots, a decrease of 300 lots from the previous trading day.