SHFE lead surged past 16,000 yuan/mt in night session, SHFE and LME jointly consolidate on a strong note at high levels [SMM Lead Morning Briefing]

SMM August 21 news:

Overnight, the LME lead 3M contract on August 20 first fell and then rose. It opened at $1,886/mt, moved sideways in the range of $1,886-1,892/mt during the Asian session, quickly dipped to the intraday low of $1,877.5/mt in early European session, then gradually rebounded. Entering the overlapping trading session of Europe and US (after 20:00 Beijing time), it accelerated its rally, hitting a high of $1,903.5/mt, and finally closed at $1,899.5/mt, up $13.5/mt from the previous trading day, an increase of 0.72%. The trading range for the whole day was $1,877.5-1,903.5/mt, with a fluctuation of $26/mt, trading volume of 6,876 lots, and open interest of 174,073 lots.

Overnight, the SHFE lead 2610 contract opened higher and moved higher during the night session. It opened at 15,930 yuan/mt, quickly rallied after opening, rose to around 16,060 yuan/mt, successfully broke through the 16,000 yuan/mt mark, then continued to drift higher, hitting a high of 16,120 yuan/mt, and finally closed at 16,115 yuan/mt, up 180 yuan/mt from the previous trading day's closing price, an increase of 1.13%. The night session saw trading volume of 39,852 lots and open interest of 80,584 lots.

It is worth noting that the rally in SHFE lead night session was highly synchronized with the LME lead trend. LME lead accelerated its rally after 20:00 Beijing time, quickly rising from around $1,880/mt to $1,903.5/mt; SHFE lead immediately followed the rally after the night session opened at 21:00, breaking through the 16,000 yuan/mt mark from 15,940 yuan/mt, hitting a high of 16,120 yuan/mt. The two trends were highly correlated, with SHFE and LME resonating to push lead prices higher.