US Fed Rate Hike Lands, LME Lead and SHFE Lead Bottom Out [SMM Lead Morning Brief]

SMM, September 17:

Overnight, the LME lead 3M contract opened at $1,875.0/mt on September 16, drifted lower during Asian and European trading hours, then shot up quickly after the US Fed's interest rate decision landed in the early morning, briefly reaching a high of $1,891.0/mt. It pulled back slightly near the close and finally settled at $1,882.0/mt, up $6.5/mt, or 0.35%, from the previous trading day's closing price. The full-day trading range was $1,871.5-1,891.0/mt, with volume of 5,993 lots, a slight increase, and open interest of 178,216 lots, up 3,735 lots. The daily candlestick closed as a small bullish candlestick.

Overnight, the SHFE lead 2610 contract opened at 15,915 yuan/mt in the night session, quickly dipped to 15,845 yuan/mt after the open, then consolidated higher, reaching an intraday high of 15,930 yuan/mt. It then consolidated in the 15,860-15,900 yuan/mt range, and remained firm after the interest rate decision landed in the early morning, finally settling at 15,900 yuan/mt, up 30 yuan/mt, or 0.19%, from the previous trading day's closing price. Night session volume was 20,137 lots, a significant contraction, and open interest was 58,038 lots, down 4,242 lots. The SHFE lead 2609 contract has its final delivery day today (September 17), and the most-traded contract rollover is accelerating, with funds shifting from the 2610 contract to the 2611 contract.