Weighed Down by Bearish Factors in the Spot Lead Fundamentals, Overnight Lead Futures Weakened [SMM Lead Morning News]

SMM November 14:

Overnight, LME lead opened at $2,090/mt, holding up well during the Asian session and touching a high of $2,093.5/mt. Entering the European session, it fluctuated downward. The US government reopened and released disappointing economic data, causing LME lead to drop to a low of $2,073.5/mt by the end of the session, down 0.81%.

Overnight, the most-traded SHFE lead 2512 contract opened at 17,670 yuan/mt, briefly touching a high of 17,695 yuan/mt early in the session. It weakened due to bearish factors in the spot market fundamentals, eventually closing at a low of 17,584 yuan/mt, down 95 yuan/mt or 0.54%, forming a small bearish candlestick with no lower shadow.

With only two trading days left until the delivery of the SHFE lead 2511 contract, lead ingots for delivery are arriving at warehouses, and social inventory of lead ingots continues to rise. Based on the open interest of the SHFE lead 2511 contract, the delivery volume of lead ingots is estimated to be around 15,000 mt. In recent days, SHFE lead has surged significantly, widening the spread between futures and spot prices. Some suppliers intend to increase shipments to delivery warehouses, and social inventory of lead ingots is expected to see further increases before next week's delivery. Overall, be cautious of the drag on lead prices from rising social inventory of lead ingots.

Data source statement: Data not from public information is processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not as decision-making advice.