Rising Inventory Buildup Pressure, SHFE Lead Continues to Consolidate on a Subdued Note [SHFE Lead Briefing]

  SMM, July 14: The most-traded SHFE lead 2608 contract opened at 15,920 yuan/mt today. After the opening, bears continued to dominate, and SHFE lead drifted lower, hitting an intraday low of 15,785 yuan/mt, the lowest level in nearly half a month. Subsequently, some bears reduced positions and exited, slowing the decline of SHFE lead, but the rebound was limited. The contract eventually closed at 15,865 yuan/mt, down 0.63%. Open interest for SHFE lead stood at 64,153 lots, down 6,798 lots from the previous trading day.

It is also worth noting that LME lead inventorysurged by 80,000 mt in a single day, dragging LME lead sharply lower. The SHFE/LME price ratio widened, and the import window opened further, which is expected to exert some pressure on China’s lead prices, suggesting they will likely continue to consolidate on a subdued note.

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