Multiple Factors Weighing Down, LME Lead and SHFE Lead Both Hit New Lows [SMM Lead Morning Brief]

SMM, July 15 –

Overnight, LME lead opened at $1,870.5/mt and consolidated during the Asian session. Entering the European session, LME lead attempted to regain the level of $1,880/mt but failed. Subsequently, LME lead inventory data showed a daily inventory increase of 80,000 mt. Bears entered heavily, and LME lead plunged sharply at one point, hitting an intraday low of $1,851/mt, the lowest since April 9, 2025. Towards the close, the losses narrowed somewhat, and LME lead eventually settled at $1,866.5/mt, down 0.35%.

Overnight, the most-traded SHFE lead 2608 contract opened at 15,870 yuan/mt. Dragged down by the decline in LME lead, SHFE lead fell quickly after opening, hitting an intraday low of 15,595 yuan/mt, the lowest since December 13, 2023. In the subsequent trading sessions, the tug-of-war between longs and shorts intensified, and the decline of SHFE lead slowed. The contract ultimately settled at 15,640 yuan/mt, down 1.45%. Open interest was 66,269 lots, up 2,116 lots from the previous trading day. In addition, the open interest of the SHFE lead 2609 contract has increased to 95,000 lots, warranting attention to the contract rollover of the most-traded contract.