Multiple Macro Uncertainties, LME Lead and SHFE Lead Hit New Lows Again [SMM Lead Morning Brief]

SMM, June 5:

Overnight, LME lead opened at $2,020/mt. During the Asian session, LME lead continued to fall, approaching the $2,000/mt level and hitting a low of $2,007/mt. Entering the European session, lead inventories outside China dropped by over 1,000 mt, and LME lead gradually stopped falling and rebounded, recovering most of its intraday losses, ultimately closing at $2,016.5/mt, down 0.2%.

Overnight, the most-traded SHFE lead 2607 contract opened at 16,455 yuan/mt. After the opening, SHFE lead was in the doldrums, dipping to 16,380 yuan/mt at one point, a new low in nearly three weeks. However, the market still had confidence in cost support from secondary lead. In the latter half of the session, SHFE lead gradually rebounded, ultimately closing at 16,430 yuan/mt, down 0.27%. Its open interest stood at 69,309 lots, an increase of 1,182 lots from the previous trading day.