The Proportion of Secondary Lead Cost Factors Rises, SHFE Lead Reverses Trend and Rises [SMM Lead Morning Brief]

SMM, January 15:

Overnight, LME lead opened at $1,952.5/mt. During the Asian session, trading between bulls and bears was sluggish, with LME lead fluctuating mainly between $1,945-1,950/mt. Later, the US dollar index reversed and pulled back, while LME lead inventory declined. During the night session, LME lead stopped falling and rebounded, eventually closing at $1,969/mt, up 1.08%.

Overnight, the most-traded SHFE lead 2502 contract opened at 16,530 yuan/mt. Pressure from inventory buildup of lead ingots persisted, while battery scrap prices rose against the trend, pushing up secondary lead costs. After the opening, SHFE lead surged strongly, reaching a high of 16,680 yuan/mt. By the close, bulls took profits, and SHFE lead gave back part of its gains, eventually settling at 16,625 yuan/mt, up 0.82%. Its open interest reached 32,242 lots, down 2,757 lots from the previous trading day.