High Inventory Pressure Dragged LME Lead Price into a Plunge, Overnight Gave Back All Gains [SMM Lead Morning Brief]

SMM July 9 News:

Overnight, LME lead opened at $1,887.5/mt. As the US dollar index drifted lower, LME lead drifted higher in the Asian session to a high of $1,904.5/mt. After entering the European session, weighed down by high inventory pressure, it plunged, giving back all gains to a low of $1,885.5/mt, and finally closed at $1,891/mt, up 0.19%.

Overnight, the most-traded SHFE lead 2608 contract opened at 16,050 yuan/mt. After initially touching a high of 16,120 yuan/mt, it drifted lower, falling to a low of 16,045 yuan/mt in the late session, and finally closed at 16,050 yuan/mt, down 0.09%.

Although LME lead has seen slight destocking recently, the high inventory of lead ingots outside China remains the biggest bearish factor in current market trading. In the Chinese market, the SHFE lead 2607 contract is approaching delivery, and social inventory of lead ingots is also a key focus. Currently, fundamental news is mediocre, providing limited support for prices. Recently, we need to pay more attention to the trend of the US dollar index and the exit of bearish positions and their impact on lead prices.