The Most-Traded SHFE Lead Contract Consolidates and Rebounds After Contract Rollover, Spot Cargo Weakness Constrains Futures Price Upside [Brief Commentary on Lead Futures]

SMM August 18 News:

During the session, the SHFE lead 2610 contract experienced a pattern of initial decline followed by a recovery. It opened at 15,880 yuan/mt, shot up to 15,905 yuan/mt in the morning before pulling back, probed a low of 15,830 yuan/mt and then stabilized again; in the afternoon, after consolidating in a narrow range of 15,855-15,865 yuan/mt, it rose amid consolidation and closed at 15,905 yuan/mt, down 45 yuan/mt, or 0.28%, from the previous trading day's closing price. The full-day trading volume was 47,125 lots, and open interest increased by 4,738 lots to 80,178 lots. The most-traded SHFE lead contract completed the contract rollover to the SHFE lead 2610 contract yesterday. Today, the contract rose with increased open interest, reflecting bullish capital positioning. However, weakness in spot cargo and insufficient essential downstream demand constrained the upside of futures prices; the priority of secondary lead circulating supply, coupled with suppliers holding prices firm, provided support at lower levels. Going forward, it is necessary to track spot cargo transactions and changes in capital and open interest in the SHFE lead 2610 contract.

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