SHFE and LME Resonated, Open Interest Increased and Rose; SHFE Lead Night Session Surged 1.02%, Breaking Through Consolidation [SMM Lead Morning News]

SMM News on August 28:

Overnight, the LME lead 3M contract on August 27 fell first and then rose throughout the day, opening at $1,907.0/mt and closing at $1,912.5/mt, up $7/mt from the previous trading day, a gain of 0.37%; it traded in a range of $1,898.0-1,917.5/mt, with an intraday swing of $19.5/mt. During the Asian session, it moved sideways in the $1,901-1,909/mt range; upon entering the overlapping Europe-US session, it surged rapidly, hitting a high of $1,917.5/mt. Trading volume was 5,534 lots, open interest was 174,366 lots, up 845 lots.

Overnight, the SHFE lead 2610 contract rose with increasing open interest in the night session, opening at 16,150 yuan/mt. After the open, it quickly surged to around 16,237 yuan/mt, then continued to consolidate at highs; after 23:00, it rose again to a high of 16,300 yuan/mt, and finally closed at 16,275 yuan/mt, up 165 yuan/mt from the previous trading day’s closing price, a gain of 1.02%. Night-session trading volume was 46,972 lots, open interest was 71,668 lots, up 2,228 lots. The night session broke above the prior consolidation-at-highs range formed by three dojis, but after the highest price (16,300 yuan/mt) touched the upper Bollinger Band, it pulled back; the closing price (16,275 yuan/mt) was below the upper band, with the upper band clearly under pressure.

Notably, the SHFE lead night-session rally was highly synchronized with the LME lead trend. After 20:00 Beijing time, LME lead surged rapidly, rising from around 1,900 to 1,917.5; after the SHFE lead night session opened at 21:00, it immediately followed with a rally, breaking through from 16,110 to 16,300. Resonance between SHFE and LME drove lead prices to rise, and both pulled back under pressure near the upper Bollinger Band.