Fundamentals Were Weak, Domestic and Overseas Lead Prices Both Fell to Two-Week Lows [SMM Lead Morning Brief]

SMM August 20 News:

Overnight, LME lead opened at $1,977/mt. During the Asian trading session, as the US dollar index weakened, LME lead fluctuated upward, approaching $1,990/mt. However, during the European trading session, LME lead gave up most of its gains. Especially after LME lead inventory surged by over 20,000 mt, the center of LME lead's price range moved further downward, hitting a low of $1,967.5/mt and setting a new two-week low. It finally closed at $1,974/mt, down 0.33%.

Overnight, the most-traded SHFE lead 2509 contract opened at 16,825 yuan/mt. Affected by the decline in LME lead, SHFE lead quickly fell after opening, reaching a low of 16,680 yuan/mt, which was the lowest level in two weeks. In the latter part of the session, the tug-of-war between longs and shorts intensified, with SHFE lead consolidating between 16,685-16,700 yuan/mt until it finally closed at 16,695 yuan/mt, down 0.68%; its open interest reached 48,632 lots, an increase of 520 lots from the previous trading day.