High Inventory Pressure Looms, LME Lead Nearly Lost the 60-Day Moving Average [SMM Lead Morning Brief]

SMM, April 23:

Overnight, LME lead opened at $1,959/mt. During the Asian session, LME lead was in the doldrums, testing toward $1,950/mt several times and finding support at the 60-day moving average. Entering the European session, continued lead ingot destocking outside China helped LME lead gradually recover the previous day's losses, approaching $1,970/mt toward the close and ultimately settling at $1,963/mt, up 0.31%.

Overnight, the most-traded SHFE lead 2606 contract opened at 16,750 yuan/mt. SHFE lead warrant inventory continued to rise, but import expectations declined. Bulls and bears remained locked in a standoff, and SHFE lead consolidated within the range of 16,700-16,775 yuan/mt for an extended period, ultimately closing at 16,760 yuan/mt, down 0.03%. Open interest stood at 65,300 lots, an increase of 1,468 lots from the previous trading day.