On Wednesday, LME lead opened at $2173.5/mt and fell to $2139/mt before finally closing at $2145/mt, down $31.5/mt, or 1.45%.
Overnight, the most-traded SHFE lead contract opened at 15,970 yuan/mt and hit a session low of 15,895 yuan/mt, and finally closed at 15,905 yuan/mt, down 80 yuan/mt, or 0.5%.
On the macro level, the Federal Reserve resumed raising interest rates in July, raising the benchmark interest rate by 25 basis points. The supply of circulating goods in the spot market is not sufficient. SHFE lead warrants have increased, but are still low. Downstream transaction situation was poor. Some battery companies consider delaying production through holidays to cope with the high lead price. However, the third quarter is the peak season for traditional lead consumption. At present, the total open interest of SHFE lead has decreased by 2,758 lots to 170,000 lots, which is still at a historical high. It is expected that the lead price will have limited downside room.
