The US dollar index closed higher for the first time in six trading sessions, while LME lead rebounded in late trading to recoup some of its losses. [SMM Lead Morning Brief]

SMM September 3:

Overnight, LME lead opened at $2,003.5/mt, briefly touched a high of $2,007/mt before plunging. As rising long-term yields pressured non-US dollar currencies such as the British pound and Japanese yen, the US dollar index posted its first gain in six trading sessions. During the European session, LME lead dipped to $1,984.5/mt before recovering some losses in late trading, eventually closing at $1,998.5/mt, down 0.42%.

Overnight, the most-traded SHFE lead 2510 contract opened lower with a gap at 16,810 yuan/mt, briefly touched a low of 16,800 yuan/mt before rebounding. Bears reduced positions, and SHFE lead fluctuated upward, eventually closing at a high of 16,895 yuan/mt, up 0.12%.

Entering September, maintenance at primary lead and secondary lead smelters increased, coupled with unresolved raw material supply constraints. Lead concentrate TCs further declined, and supply-side reduction expectations may support lead prices to hold up well. However, it is worth noting that after the conclusion of this week's Tianjin SCO Summit and Beijing military parade, attention should be paid to the lifting of logistics restrictions in North China, which will increase spot market supply. Considering current lackluster lead consumption, short-term downward pressure on lead prices cannot be ruled out.

Data source statement: Except for publicly available information, other data are derived from public information, market exchanges, and SMM's internal database model, processed by SMM for reference only and do not constitute decision-making advice.