Open interest continued to pull back, pushing up lead prices, while spot lead performance limited the gains [Lead Futures Brief]

SMM August 11 news:

During the day, the most-traded SHFE lead 2609 contract continued to hold up well, with LME lead performing strongly, providing some boost to the SHFE. Meanwhile, bears closing positions pushed the price center higher. It hit a high of 15,930 yuan/mt during the session, consolidated at highs around 15,900 yuan/mt, and finally settled at 15,905 yuan/mt, up 35 yuan/mt from the previous trading day's settlement, a gain of 0.22%. Trading volume was 56,628 lots, and open interest decreased by 8,663 lots to 51,523 lots. The daily candlestick closed positive for a third consecutive day, and the futures market remained strong in the short term.

Spot market, today SMM #1 lead average price rose 100 yuan/mt, but as lead prices rose, suppliers actively sold, primary lead smelters lowered their quotes, and secondary refined lead discounts widened to 100-50 yuan/mt against SMM #1 lead average price. Downstream, fear of high prices was strong, with mainly just-in-time procurement, and spot transactions did not see obvious improvement.

In summary, LME lead strength and bear position reduction continued to push the SHFE lead price center higher, but after prices rose, spot supply increased while downstream purchase willingness at high prices was limited. In the short term, SHFE lead may continue to consolidate on a strong note, with attention on the sustainability of the position-reduction trend and downstream purchasing follow-through.