LME lead narrows losses & SHFE lead holds lower bound in night session, lead prices consolidate on a weak note [SMM Lead Morning Update]

SMM, September 16:

Overnight, the LME lead 3M contract opened at $1,880.5/mt on September 15, dipped to $1,870.0/mt during the European session, briefly rebounded to around $1,880/mt in the evening, then pulled back again in the early morning, ultimately closing at $1,875.5/mt, down $4.5/mt or 0.24% from the previous trading day's closing price. The full-day trading range was $1,870.0-1,882.5/mt, with volume of 5,525 lots, down 4,199 lots, and open interest of 174,481 lots, down 999 lots. The daily candlestick formed a small bearish candlestick.

Overnight, the SHFE lead 2610 contract opened at 15,830 yuan/mt in the night session, shot up briefly after the open before consolidating lower, then moved sideways in a narrow range at 15,755-15,800 yuan/mt, ultimately closing at 15,780 yuan/mt, edging up 5 yuan/mt or 0.03% from the previous daytime session's closing price. Volume was 25,598 lots, and open interest was 62,815 lots.

Overall, both SHFE and LME lead shifted from the earlier sharp break-down decline to low-level consolidation on a weak note. In addition, yesterday was the last trading day for the SHFE lead 2609 contract, and delivery begins today. Funds continued to migrate to the 2611 contract, so attention should be paid to the convergence of nearby contracts and the disturbance from the most-traded contract rollover.