Geopolitical Tensions Flared Up Again, and LME Lead Once Fell Below the 20-Day Average [SMM Lead Morning Brief]

SMM, April 3:

Overnight, LME lead opened at $1,931.5/mt. During the Asian session, LME lead trading was sluggish and basically consolidated between $1,925/mt and $1,930/mt. Entering the European session, LME lead gradually fluctuated downward. Coupled with renewed turbulence in Middle East geopolitical tensions, the decline in LME lead widened, and it once fell below the 5-day and 20-day moving averages. It was not until the night session, boosted by the strength of SHFE lead, that LME lead recovered most of its losses, finally closing at $1,934.5/mt, down 0.23%. In addition, due to Good Friday, LME lead was closed today.

Overnight, the most-traded SHFE lead 2605 contract opened at 16,680 yuan/mt. With China lead ingot destocking and expectations of the off-season in consumption coexisting, longs and shorts were locked in a tug-of-war during the session, and SHFE lead fluctuated between 16,700 yuan/mt and 16,760 yuan/mt for an extended period, until it finally closed at 16,750 yuan/mt, up 0.21%. Its open interest stood at 56,412 lots, down 554 lots from the previous trading day.