US dollar index rebounds to make up for gains, overnight lead futures close lower under pressure [SMM Morning Lead News]

SMM June 11:

Overnight, LME lead opened at $1,989/mt. During the Asian session, it fluctuated upward. Entering the European session, it rose to a high of $1,995/mt before pulling back under pressure from the rising US dollar. It hit a low of 1,976.5 yuan/mt in the tail end of the session and finally closed at $1,987.5/mt, down 0.03%.

Overnight, the most-traded SHFE lead 2507 contract opened lower with a gap at 16,850 yuan/mt. It briefly touched a low of 16,805 yuan/mt at the beginning of the session and fluctuated around 16,830 yuan/mt during the session, with a high of 16,860 yuan/mt. It finally closed at 16,815 yuan/mt, down 0.24%.

As the delivery date approaches, quotes for cargoes self-picked up from electrolytic lead smelters remain firm, with few sellers willing to sell at a discount. For secondary lead, due to still tight raw material supply, ongoing loss pressures, and difficulties in closing deals for premium cargoes, smelters' willingness to sell is low. Mainstream secondary refined lead is quoted at parity with the SMM 1# lead average price ex-factory, with a few deals for refined lead at a discount of 100 yuan/mt in some regions. On the demand side, some downstream enterprises are restocking to meet immediate needs, and their willingness to purchase has improved due to concerns about future price increases. Additionally, most downstream enterprises maintain a strong wait-and-see sentiment. Overall, lead prices are likely to maintain a fluctuating trend.