SMM Lead Market Morning Comment (May 21)

Overnight, LME lead opened at $2,293/mt, continuing its upward trend throughout the day and recording six consecutive days of gains. LME lead inventory continued to decline by over 3,000 mt, together with a weakening US dollar index during the session. After LME lead rose above the $2,300/mt mark, its trading focus gradually shifted upward, reaching a peak of $2,348.5/mt, the highest since May 6, 2022. By the night session, bullish sentiment eased, and LME lead ultimately closed at $2,332/mt, up 1.28%.

Overnight, SHFE lead warrant inventory sharply decreased by nearly 10,000 mt. The most-traded SHFE 2407 lead contract opened at 18,890 yuan/mt. Boosted by the rise in LME lead, SHFE lead showed a trend of opening low and moving higher. During the first half of the trading session, SHFE lead rose to around 19,000 yuan/mt, with a tug-of-war between bulls and bears, consolidating at this level for a long time. Subsequently, driven by the rise in LME lead, SHFE lead continued to surge, reaching a high of 19,175 yuan/mt, and finally closed at 19,085 yuan/mt, up 1.38%. Its open interest reached 88,188 lots, an increase of 5,897 lots from the previous trading day.