SMM Lead Morning Comment

Futures Market: Overnight, LME lead opened at $2,212.5/mt. Under the dual pressure of the strength of the US dollar and the gradual accumulation of lead inventory, LME lead continued its downward trend throughout the day. During the Asian session, influenced by the resilience of SHFE lead, LME lead managed to stay above $2,200/mt. However, entering the European session, the inventory pressure increased, leading to a sharp decline in LME lead, reaching a lowest point of $2,154/mt, a one-and-a-half-month low. LME lead eventually closed at $2,169.5/mt, a drop of 1.79%.

Overnight, the most-traded SHFE lead contract (2408 contract) opened at ¥18,630/mt. Close to the delivery date, the SHFE lead warrants increased, and with the lead ingot import window about to open, potentially altering the domestic supply tightness. SHFE lead fluctuated downward, reaching a lowest point of ¥18,505/mt, a half-month low. SHFE lead eventually closed at ¥18,575/mt, a drop of 0.93%; open interest stood at 80,642 lots, an increase of 6,076 lots from the previous trading day.