Macro factors were bearish, SHFE lead and LME lead both declined [SMM Lead Morning Brief]

SMM, July 27:

Last Friday, LME lead opened at $1,891.5/mt. During the Asian session, LME lead consolidated on a subdued note, mostly trading in the $1,885–1,890/mt range. Entering the European session, news of easing Middle East tensions emerged, driving lead and zinc prices higher in tandem. LME lead briefly surged to $1,900/mt, but mixed macro news and volatile market sentiment caused it to pull back after the spike and eventually close at $1,885.5/mt, down 0.08%.

Last Friday, the most-traded SHFE lead 2609 contract opened at 15,730 yuan/mt. Weighed by volatile macro factors and heightened expectations of domestic lead ingot inventory buildup, SHFE lead slid in a stair-step pattern after the open, approaching 15,600 yuan/mt before finally settling at 15,640 yuan/mt, down 0.54%. Open interest stood at 105,000 lots, down 1,628 lots from the previous trading day.