Macro Policy Disturbances Cause Divergence in Domestic and Overseas Lead Prices [SMM Lead Morning Brief]

SMM March 3 News:

Last Friday, LME lead opened at $2,003.5/mt. During the Asian session, market trading was sluggish, and LME lead was slightly dragged down by the weakness in SHFE lead, with its price center shifting slightly lower but mostly hovering in a consolidation pattern. Entering the European session, LME lead rebounded, but the escalation of trade war expectations intensified, causing a general decline in base metals. LME lead also saw consecutive declines during the night session, eventually closing at $1,987/mt, down 1.05%.

Last Friday, the most-traded SHFE lead 2504 contract opened at 17,190 yuan/mt. In early trading, SHFE lead surged strongly, reaching a high of 17,280 yuan/mt. Although it was briefly pulled back to around 17,200 yuan/mt due to the downward pressure from LME lead, it still managed to hover at highs during the latter part of the session. SHFE lead finally closed at 17,240 yuan/mt, up 0.29%; its open interest reached 48,467 lots, an increase of 615 lots compared to the previous trading day. In the lead market fundamentals, unexpected maintenance at some delivery brand enterprises led to a decline in smelters' in-plant inventory, while social warehouses reached a three-month high, limiting the upward potential for lead prices.