SHFE Lead Front-Month Contract in the Delivery Phase, Overnight Performance Was Relatively Weak [SMM Lead Morning News]

SMM News, August 17:

Last Friday, the LME lead 3M contract opened at $1,890.5/mt. It drifted lower during the Asian session, bottoming at $1,881.0/mt before consolidating in a narrow range at low levels. Entering the European session, it gradually rebounded, then surged late in the session to a high of $1,896.5/mt, and finally closed at $1,895.5/mt, up 0.26%. Open interest increased by 3,720 lots to 183,969 lots that day.

On Friday night, the SHFE lead 2609 contract opened at 15,840 yuan/mt in the night session. After briefly touching a high of 15,855 yuan/mt early on, it quickly fell, dipping to a low of 15,740 yuan/mt, then rebounded in consolidation. In the latter half, it traded in the 15,820–15,840 yuan/mt range, and finally closed at 15,805 yuan/mt, down 0.22%. Night-session open interest decreased by 1,185 lots to 37,951 lots. It should be noted that the 2608 contract is currently in the delivery phase, and prices and open interest of near-month contracts are susceptible to disruptions from delivery and contract rollover. The subsequent trend of the SHFE lead 2609 contract still requires close tracking of the pace of fund position shifting. Overall, after retreating from highs, SHFE lead has yet to show clear momentum for a rebound.