SMM Lead Market Morning Comment (Mar 5)

LME lead prices inched down and finally closed at $2103.5/mt in overnight trading, down $25.5/mt, or 1.2%. The contract fell for three consecutive days.

Overnight, SHFE 2309 tin contract price shook and fell sharply at the opening.

LME zinc prices closed down $47/mt or 1.96% at $2,351/mt yesterday evening. The trading volume increased to 9,767 lots, and open interest increased 501 lots to 209,000 lots.  LME zinc inventories increased by 375 mt to 92,175 mt, an increase of 0.41%. Overnight, the Fed's hawkish remarks bolstered the US dollar and that put pressure on LME zinc prices.

According to SMM survey, social lead ingot inventory across five major regions in China totalled 50,800 mt as of July 31, up 5,200 mt from July 28 and 9,100 mt from July 24, the highest in four months.

In July 2023, Indonesian NPI output was 119,400 mt in nickel content, a 2.65% MoM decrease and a 30.8% YoY increase.

HRC futures moved sideways today, closing down 0.76% at 3,921 yuan/mt.

China's copper cathode output in July was 925,900 mt, an increase of 8,000 mt or 0.9% month-on-month, and a growth of 10.2% year-on-year; The output increased 23,800 mt compared with the expected 902,100 mt.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Aug 10, 2023

Overnight, LME Lead opened at $2093 per ton. Driven by the strength of SHFR Lead, LME Lead also showed a fluctuating upward trend, basically repairing the previous day's decline, reaching a maximum of $2118.5 per ton at night, and finally closing at $2116.5 per ton in the end of the day, an increase of 1.1%.

Overnight, U.S. climate envoy Kerry held talks with Chinese officials, saying that China-U.S. climate relations still need “more work”; the IMF said that the appreciation of the dollar would hit emerging markets more than developed economies; China will announce July LPR on Thursday, and Reuters polls show that expectations for stability are unprecedentedly consistent; South Africa said that Russian President Vladimir Putin will not attend the BRICS summit in August.