SMM lead market morning comment (Mar 19)

LME lead opened at $2,125/mt on Monday. High stocks and strong US dollar index kept bringing LME lead down. LME lead further dropped to a low of $2,085/mt due to a 4,425 mt increase of LME lead stocks on that day and expected US dollar interest rate cut, and finally closed down $2.04/mt at $2,087.5/mt.

Overnight, the most-traded SHFE 2405 lead contract opened at 16,265 yuan/mt, and hiked to 16,325 yuan/mt amid expected maintenance of delivery brands, but dipped to 16,225-16,250 yuan/mt due to severe inventory backlogs and more short positions, and finally closed down 0.22% at 16,220 yuan/mt. Open interest was up 922 lots to 49,263 lots.