Summary of SMM Lead Morning Meeting on July 28, 2023

On Thursday, LME lead opened at $2147/mt, hit a session low of $2146.5/mt at the beginning and then shook up to $2175/mt, and finally closed at $2156.5/mt, up $11.5/mt, or 0.54%.

Overnight, the most-traded SHFE lead contract opened at 15,960 yuan/mt and hit a session low of 15,940 yuan/mt, and finally closed at 15,965 yuan/mt, up 40 yuan/mt, or 0.25%.

On the macro level, the strong US data release boosted the US dollar index and non-ferrous metals were under downward pressure, so the lead prices were also affected. Recently, the supply of goods circulating in the spot market is not sufficient, and SHFE lead warrants increased but remained at historically low levels. The market has positive expectations for refined lead consumption in the third quarter, but the recent downstream consumption is still in the off-peak period. The high price of lead has inhibited downstream procurement enthusiasm, and the inventory of refined lead at home and abroad is still expected to increase slightly this week. Under the interweaving of positive and negative factors, SHFE lead lacked upward momentum. Open interest of SHFE lead fell back to 167,000 lots.