Lead Ingot Inventory Trends Diverge in and outside China, LME Lead Outperforms China [SMM Lead Morning Brief]

SMM April 20:

Overnight, LME lead opened at $1,961.5/mt. Buoyed by ceasefire news in the Middle East, most base metals rose. Meanwhile, with gradual destocking of lead ingots outside China, LME lead fluctuated upward, especially during the European session, when it once surged to $19,773.5/mt, a nearly one-and-a-half-month high. Toward the close, LME lead gave back some gains, ultimately settling at $1,959/mt, down 0.18%.

Overnight, the most-traded SHFE lead 2605 contract opened at 16,820 yuan/mt. Early in the session, bulls showed strong momentum as SHFE lead attempted to approach 16,900 yuan/mt. However, lead ingot inventory buildup in China intensified the tug-of-war between longs and shorts. In the latter half of the trading session, SHFE lead gradually gave back some gains, ultimately closing at 16,760 yuan/mt, up 0.24%. Its open interest stood at 43,636 lots, down 2,256 lots from the previous trading day.