US Fed Signals Hawkish Stance, LME Lead Rebounds After Probing Lows [SMM Lead Morning Brief]

SMM August 21 News:

Overnight, LME lead opened at $1972.5/mt, and during the Asian session, it was in the doldrums, fluctuating between $1965-1970/mt, hitting a low of $1965/mt, refreshing a two-week low. In the European session, the US dollar index pulled back after peaking, and LME lead stopped falling and rebounded, regaining the $1980 level, finally closing at $1980/mt, up 0.33%, largely recovering the losses from the previous trading day.

Overnight, the most-traded SHFE lead 2509 contract opened at 16770 yuan/mt. The decline in domestic lead warrant inventory alleviated bearish sentiment, and with strong support from secondary lead costs, SHFE lead stopped falling and rebounded, approaching 16800 yuan/mt, and finally closed at 16780 yuan/mt, up 0.3%. Open interest stood at 46592 lots, down 184 lots from the previous trading day.