Nonferrous Metals Mostly Declined, Lead Prices Returned to Early Week Levels [SMM Lead Morning Brief]

SMM Jan. 9:

Overnight, LME lead opened at $2,055/mt. As funds flowed out of the nonferrous metals sector, LME lead fluctuated downward throughout the day, trading around $2,030/mt during the Asian session. During the European session, LME lead inventory continued to decline. LME lead attempted to climb back above $2,050/mt but failed. The decline accelerated towards the end of the session, with the price hitting a low of $2,016.5/mt, and it ultimately closed at that level, down 2.04%.

Overnight, the most-traded SHFE lead 2602 contract opened at 17,350 yuan/mt. After opening, SHFE lead traded in the doldrums, consolidating mostly between 17,250 yuan/mt and 17,300 yuan/mt for much of the session. It finally closed at 17,290 yuan/mt, down 1/13%. Its open interest fell to 44,724 lots, a decrease of 1,304 lots from the previous trading day. Funds are gradually flowing out of domestic SHFE lead, possibly being rolled over to the SHFE lead 2603 contract. The shift of the most-traded contract warrants attention.