SMM Lead Market Morning Comment (Jul 24)

Overnight, LME lead opened at $2,087/mt. With the strengthening of the dollar and concerns over demand, LME lead's decline widened compared to the previous trading day. Especially during the European session, LME lead inventory surged by over 40,000 mt, causing the trading focus of LME lead to continue to shift downward. LME lead reached a low of $2,050/mt, once again hitting a new low since April 3, 2024, and eventually closed at $2,054/mt, down 1.6%.

Overnight, the most-traded SHFE 2409 lead contract opened at 19,025 yuan/mt. The impact of domestic supply resumption and import expectations continued to ferment, causing SHFE lead to plummet quickly after the opening. SHFE lead hit a low of 18,780 yuan/mt, a new one-month low. In the latter part of the trading session, the tug-of-war between bulls and bears intensified, and SHFE lead recovered part of its losses, eventually closing at 18,965 yuan/mt, down 0.68%. The open interest reached 126,000 lots, an increase of 6,660 lots compared to the previous trading day.