US dollar index dives, non-ferrous metals pressure eases, overnight lead futures close higher on both sessions [SMM Lead Morning News]

SMM May 21:

Overnight, LME lead opened at $1,965/mt, touching a low of $1,961.5/mt in the Asian session. As the US dollar index plunged, pressure on non-ferrous metals eased, and LME lead fluctuated upward in the European session, reaching a high of $1,994.5/mt before the close and eventually closing at $1,986.5/mt, up 1.12%.

Overnight, the most-traded SHFE lead 2506 contract opened higher with a gap at 16,900 yuan/mt, touching a high of 16,935 yuan/mt in the early session. Due to concerns about the lead demand outlook, some short funds entered the market, causing SHFE lead to briefly dip to 16,830 yuan/mt. It slightly rebounded before the close, eventually closing at 16,905 yuan/mt, up 0.57%.

As the consumption of downstream lead-acid batteries has yet to improve, trading activity in the spot lead ingot market remains sluggish. Lead ingots are generally being sold at parity or at a small discount, and downstream purchase willingness remains poor. Such market conditions are suppressing the production enthusiasm of smelters, especially as the operating rate of secondary lead has yet to show a significant recovery. Market expectations for the traditional peak season have declined, with short funds staying on the sidelines and some longs exiting the market. Despite the weak spot performance dragging down lead prices, attention should still be paid to the impact of macro sentiment on lead prices in the near term.