SMM Lead Market Morning Comment (Aug 15)

Overnight, LME lead opened at $1,997.5/mt. The market bet on a US Fed rate cut in September, causing the US dollar index to plummet, and most base metals strengthened. LME lead, driven by destocking factors, quickly rebounded above $2,000/mt after stopping its decline, and finally closed at $2,017.5/mt, up 1.64%.

Overnight, the most-traded SHFE lead 2409 contract opened at 17,355 yuan/mt. The lead ingot inventory build-up and the expected production cuts at secondary plants coexisted, leading to intense long-short battles. After rising at the beginning of the session, SHFE lead hovered around 17,450 yuan/mt for most of the trading period, finally closing at 17,470 yuan/mt, up 0.26%. Its open interest was 70,169 lots, down 1,796 lots from the previous trading day.