SMM, September 14:
The SHFE lead 2610 contract opened at 16,120 yuan/mt in the daytime session. Shortly after the morning open, it fell sharply, breaking below the 16,000 mark and the middle Bollinger Band, with 16,000 flipping from support to resistance. In the afternoon, it consolidated at lows, hitting a session low of 15,810 yuan/mt, before a slight rebound into the close. It settled at 15,825 yuan/mt, down 310 yuan/mt or 1.92% from the previous trading day's closing price. Volume totaled 79,690 lots, up 11,730 lots, while open interest rose by 1,042 lots to 63,987 lots, indicating bears actively added positions to drive the market lower. The daily candlestick closed as a large bearish candle. Spot prices held firm, and downstream users bought the dip, providing some support below futures prices and limiting room for a sharp decline. SHFE lead is expected to remain in the doldrums in the near term, with focus on LME lead movements and disturbances from the US dollar and interest rate hike expectations.
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