SHFE lead 2610 contract swung wildly and closed higher, bulls cashed in, short-term strength [Lead Briefing]

SMM, August 19 –

Intraday, the SHFE lead 2610 contract swung wildly, opening at 15,950 yuan/mt, briefly dipping to the day’s low of 15,870 yuan/mt before rebounding, then moving sideways in the range of 15,905-15,935 yuan/mt, and finally closing at 15,930 yuan/mt, up 25 yuan/mt from the previous trading day’s closing price, a gain of 0.16%. Total trading volume for the day was 64,045 contracts, an increase of 16,920 contracts from the previous trading day, while open interest decreased by 207 contracts to 79,974 contracts. The SMM #1 lead average price also rose 25 yuan/mt, with futures and spot prices moving largely in sync. Downstream demand was dominated by just-in-time procurement. Primary lead suppliers sold at market prices, with a clear north-south divergence; secondary lead suppliers also sold at market prices, but circulating supply was limited. Overall, in the short term, SHFE lead continues to consolidate at highs, drifting higher. Going forward, attention should be paid to the improvement in spot transactions between the north and south, the impact of smelter operating rate changes on inventory, and changes in fund open interest for the SHFE lead 2610 contract.