Bullish and Bearish Factors Coexisted in and outside China, SHFE Lead Replicated Previous Day's Trend [SMM Lead Morning Brief]

SMM, June 2:

Overnight, LME lead opened at $2,015/mt. Throughout the day, LME lead continued to hold up well, trading mostly in the range of $2,010-2,020/mt. However, during the night session, renewed turmoil over the Middle East ceasefire agreement caused LME lead to turn sharply lower in late trading, nearly falling below $2,000/mt, ultimately closing at $2,012/mt, up 0.02%. Overall, the operating center of LME lead had shifted lower compared to the previous day.

Overnight, the most-traded SHFE lead 2607 contract opened at 16,565 yuan/mt. After the opening, SHFE lead nearly replicated the previous trading day's night session movement, consolidating around 16,600 yuan/mt for most of the session before dropping rapidly in late trading. SHFE lead ultimately closed at 16,555 yuan/mt, down 0.09%. Its open interest stood at 63,692 lots, a decrease of 1,304 lots from the previous trading day.