US Dollar Index Rises Strongly Both Fall Overnight [SMM Lead Morning Brief]

SMM March 21: Overnight, LME lead opened at $2,089.5/mt, briefly touched a high of $2,095.5/mt before fluctuating downward. Due to the strong rise in the US dollar index, LME lead continued to weaken after entering the European trading session, hitting a low of $2,048.5/mt near the close and finally settling at $2,049.5/mt, down 1.89%. Overnight, the most-traded SHFE lead 2505 contract opened lower with a gap at 17,580 yuan/mt, briefly touched a high of 17,620 yuan/mt, but was dragged down by LME lead, falling to 17,550 yuan/mt, and finally closed at 17,580 yuan/mt, down 0.51%. This week, the SHFE lead 2503 contract completed delivery, and social inventory of lead ingots increased. Recently, primary lead smelters in Henan region entered maintenance, leading to a temporary tightening of lead supply. At the same time, some imported lead ingots cleared customs and entered the domestic market, with most going directly to factories; some secondary lead smelters indicated a discount of 200 yuan/mt against SMM 1# lead average price for self pick-up at ports, while some downstream battery companies indicated that a small discount could be delivered. Recently, SHFE lead maintained a fluctuate upward trend, and attention should be paid to the marginal changes in refined lead supply.