Overnight SHFE Lead Opened Higher with a Gap, Ended Flat Due to Holiday Consumption Absence [SMM Lead Morning News]

SMM, June 18:

Overnight, LME lead opened lower with a gap at $1,979.5/mt and fluctuated upward during the Asian session. After entering the European session, it fell first and then rose. During the session, it hit a low of $1,973/mt and a high of $1,987/mt. It gave back part of its gains late in the session and finally closed at $1,985/mt, up 0.13%.

Overnight, the most-traded SHFE lead 2607 contract opened higher with a gap at 16,505 yuan/mt. Early in the session, it briefly touched a high of 16,520 yuan/mt as bears reduced positions. Affected by downstream holiday plans for the Dragon Boat Festival, the absence of lead ingot consumption limited the upside in lead prices. SHFE lead moved sideways and finally closed at 16,470 yuan/mt, with a gain of 0.

On the last trading day before the Dragon Boat Festival, coupled with the impact of mid-year account closing, some enterprises also stopped shipments or payments. Wait-and-see sentiment was strong in the market, and some enterprises suspended trading. On the supply side, the number of enterprises undergoing maintenance increased. In addition, with delivery-related factors being implemented, expectations for post-holiday lead ingot inventory buildup were limited. Attention should be paid to the impact of downstream resumption after the holiday on lead price trends.