Overseas Destocking and Rising Expectations of Interest Rate Cuts Drive LME Lead to Strong Gains [SMM Lead Morning Brief]

Published: Mar 5, 2025 09:01

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[SMM Lead Morning Brief: Overseas Destocking and Rising Interest Rate Cut Expectations, LME Lead Strongly Rises] SMM, March 5: Overnight, LME lead opened at $1,993/mt. During the Asian session, the market was sluggish, with LME lead fluctuating between $1,985-2,000/mt. Entering the European session, LME lead inventory continued to decline...

SMM March 5 News: Overnight, LME lead opened at $1,993/mt. During the Asian trading session, the market saw sluggish trading, with LME lead fluctuating between $1,985-2,000/mt. Entering the European session, LME lead inventory continued to decline, coupled with the US dollar index falling to a three-month low, leading to a general strengthening of base metals. LME lead reached a high of $2,014.5/mt and eventually closed at $2,012.5/mt, up 0.9%. Overnight, the most-traded SHFE lead 2504 contract opened at 17,290 yuan/mt. Driven by the rise in LME lead, SHFE lead surged strongly at the beginning of the session, breaking above the 17,300 yuan/mt level and reaching a high of 17,330 yuan/mt, the highest level this year. However, with increased domestic market supply and lingering inventory buildup risks, SHFE lead pulled back after the surge and finally closed at 17,240 yuan/mt, up 0.12%. Its open interest reached 45,680 lots, down 675 lots from the previous trading day.

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