SMM Lead Market Morning Comment (Jul 25)

Overnight, LME lead opened at $2,058/mt. After several consecutive days of decline, LME lead cash-to-three-month contango narrowed to -$24.38/mt, and the downward trend also slowed down. LME lead fluctuated between $2,050-2,070/mt. However, during the night session, LME lead saw an expanded decline, reaching a low of $2,035.5/mt, once again hitting the lowest level since April 3, 2024, and eventually closed at $2,038.5/mt, down 0.75%, marking an eight-day drop.

Overnight, lead warrant inventory decreased. The most-traded SHFE 2409 lead contract opened at 19,180 yuan/mt. However, the impact of the expected domestic lead ingot supply resumption continued to ferment. SHFE lead showed a trend of moving downwards after a higher opening, falling below 19,000 yuan/mt again, eventually closing at 18,945 yuan/mt, down 0.13%. The open interest rose to 123,000 lots, an increase of 1,220 lots compared to the previous trading day.