SMM Lead Market Morning Comment (Jul 23)

Overnight, LME lead opened at $2,127/mt and continued the weakness from the previous trading day, with the trading focus shifting downward throughout the day. Especially during the European session, LME lead inventory increased by nearly 1,000 mt, and LME lead expanded the decline, falling below $2,100/mt, reaching a low of $2,080/mt, the lowest since April 3, 2024, until it finally closed at $2,087.5/mt, down 1.6%.

Overnight, the most-traded SHFE 2409 lead contract opened at 19,030 yuan/mt, with intensifying expectations of domestic supply resumption. Bears entered the market in large numbers, causing SHFE lead to plummet significantly. SHFE lead at one point fell below 19,000 yuan/mt, reaching a low of 18,970 yuan/mt. By the night session, some bears exited after taking profits, and SHFE lead returned to above 19,000 yuan/mt, finally closing at 19,040 yuan/mt, down 1.27%. The open interest reached 120,000 lots, an increase of 6,979 lots from the previous trading day.