SMM News, November 19:
Overnight, LME lead opened at $2,039/mt. As the US dollar index continued to strengthen and base metals generally weakened, LME lead extended its step-like decline. Although the decline in LME lead inventory temporarily slowed the fall and triggered a rebound during the session, this trend did not continue into the night session. Instead, dragged down by the decline in SHFE lead, LME lead fell again, hitting a low of $2,022/mt, and finally closed at $2,027/mt, down 0.56%, marking a four-day losing streak.
Overnight, the most-traded SHFE lead 2601 contract opened at 17,225 yuan/mt. After the lead price fell, downstream enterprises showed low buying interest, and lead ingot destocking was not yet significant, keeping SHFE lead in the doldrums. It hit a low of 17,190 yuan/mt during the session and finally closed at 17,195 yuan/mt, down 0.49%. Open interest decreased by 2,255 lots to 66,869 lots compared with the previous trading day. With lead prices continuing to fall recently, the support effectiveness of the 60-day daily average line below needs to be watched.
