Nonferrous Funds Trigger Price Collapse, LME Lead and SHFE Lead Both Hit New Lows [SMM Lead Morning News]

SMM Feb. 3:

Overnight, LME lead opened at $1,995/mt. Affected by the broad decline in precious and nonferrous metals, its trading center shifted further downward, hitting a low of $1,952.5/mt during the session, the lowest level in nearly one and a half months. The losses were slightly pared by the end of the session, and it finally closed at $1,970.5/mt, down 1.23%.

Overnight, the most-traded SHFE lead 2603 contract opened at 16,690 yuan/mt. Nonferrous funds faced a price collapse, coupled with lead ingot inventory buildup, and bears entered the market intensively at the beginning of the session, pushing SHFE lead to a low of 16,565 yuan/mt, the lowest level in 10 months. Subsequently, the tug-of-war between longs and shorts intensified, and SHFE lead gradually recovered some losses, finally closing at 16,675 yuan/mt, down 0.77%. Its open interest fell to 55,993 lots, down 1,036 lots from the previous trading day.