SMM Lead Market Morning Comment (July 3)

Overnight, LME lead opened at $2,219/mt. During the day, driven by the strong performance of SHFE lead, LME lead swung on a soft note, touching $2,238.5/mt at the top, refreshing a one-and-a-half-week high. However, with inventory accumulation in LME lead, together with a reversal and decline in SHFE lead, LME lead also plummeted, once falling below the $2,200/mt mark, and finally closed at $2,201.5/mt, down 0.56%.

Overnight, the most-traded SHFE lead 2408 contract opened at 19,740 yuan/mt. With a slight increase in domestic lead inventory and the expectation of imported lead arrivals, SHFE lead reversed its daytime strength and gradually fluctuated downward, hitting a low of 19,525 yuan/mt during the session. Meanwhile, the reduction in domestic ingot production continued. In the latter part of the trading session, SHFE lead consolidated around 19,575 yuan/mt due to positive and negative factors, finally closing at 19,570 yuan/mt, down 0.48%. Its open interest reached 103,000 lots, a decrease of 3,945 lots from the previous trading day.