US Dollar Index Hits One-Week High, LME Lead Retreats After Surge [SMM Lead Morning Comment]

Overnight, LME lead opened at $2,329/mt and continued its recent upward trend, reaching a high of $2,359/mt, the highest since April 26, 2022. However, after the release of the US Fed meeting minutes, the US dollar index jumped to a one-week high, causing base metals to fall. LME lead also dropped sharply to $2,308/mt and eventually closed at $2,312/mt, down 0.73%.

Overnight, SHFE lead warrant inventory increased by over 1,000 mt. The most-traded SHFE lead contract (2407) opened at 18,685 yuan/mt, but the tight supply of scrap eased, causing SHFE lead to move downwards after a higher opening, hitting a low of 18,455 yuan/mt. By the night session, SHFE lead's decline slightly retraced, eventually closing at 18,520 yuan/mt, down 0.19%. Its open interest reached 80,756 lots, an increase of 1,132 lots from the previous trading day.