SMM News, November 20:
Overnight, LME lead opened at $2,025/mt. During the Asian session, LME lead was locked in a stalemate between longs and shorts, consolidating mostly between $2,020-2,025/mt. Entering the European session, the decline in LME lead expanded, especially after the release of the US Fed minutes, which lowered market expectations for a December interest rate cut. The US dollar index broke through the 100 mark, causing LME lead to fall further, hitting a session low of $2,013/mt, before finally closing at $2,014.5/mt, down 0.62%, marking five consecutive declining sessions. Subsequent attention will focus on the effectiveness of support at the 60-day daily average line.
Overnight, lead warrant inventory decreased. The most-traded SHFE lead 2601 contract opened at 17,300 yuan/mt, reversing the recent consecutive decline trend. However, current fundamental support is limited, and coupled with the drag from LME lead's decline, SHFE lead fluctuated and pulled back, trading around 17,250 yuan/mt before finally closing at 17,230 yuan/mt, up 0.09%. Its open interest decreased to 62,446 lots, down 1,449 lots from the previous trading day.
