Overnight bears cut positions, later lead rebounded to test highs and closed higher [SMM Lead Morning Brief]

Published: Jul 20, 2026 08:02

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SMM July 20 news:

Last Friday, LME lead opened at $1,869.5/mt and moved sideways during Asian trading hours. Entering the European session, it dipped initially before rebounding, touching a low of $1,863.5/mt, and later surged to a high of $1,890.5/mt near the close as bears reduced their positions, eventually settling at $1,887/mt, up 0.96%.

Last Friday night, the most-traded SHFE lead 2609 contract opened at 15,875 yuan/mt, briefly hit a low of 15,855 yuan/mt in early trading, and then rebounded to a high of 15,980 yuan/mt as bears cut their positions, before finally closing at 15,945 yuan/mt, up 0.44%.

Due to delivery factors and downstream purchases, visible lead ingot inventory rose then fell last week. After the bearish news of inventory buildup outside China was fully digested, the Chinese market's attention shifted to the production of secondary lead enterprises and downstream purchasing trends. If lead ingot inventory continues to destock this week, lead prices are expected to return to and consolidate above the 16,000-yuan-per-mt level.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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