SMM, May 8:
Overnight, LME lead opened at $1,918/mt. Dragged down by the weakness of SHFE lead during the Asian session, LME lead remained in the doldrums, with the intraday low at $1,915/mt. Entering the European session, the center of LME lead's operation gradually moved upward. In particular, as lead inventory fell by nearly 5,000 mt daily, driven by destocking, LME lead gradually approached $1,935/mt. Until the closing session, domestic and overseas lead prices jointly surged, with LME lead shooting straight up, touching $1,961/mt, recovering most of the losses from the previous two trading days, and finally closing at $1,959.5/mt, up 2.16%.
Overnight, the most-traded SHFE lead 2506 contract opened at 16,720 yuan/mt. The weakness of domestic lead consumption persisted. After the opening, SHFE lead basically consolidated between 16,700-16,750 yuan/mt. Meanwhile, expectations for production cuts of secondary lead in China intensified. During the closing session, SHFE lead surged strongly, rising above the 20-day moving average, with the intraday high at 16,855 yuan/mt, and finally closing at 16,830 yuan/mt, up 0.57%. Its open interest reached 36,763 lots, a decrease of 166 lots from the previous trading day.
