SHFE Lead Sets for Losses (2016-10-12)

SHANGHAI, Oct. (SMM) – Attention should be on OPEC crude oil monthly market report on Wednesday. LME lead is predicted to move at USD 2,040-2,060/mt on Wednesday. SHFE 1611 lead soared and then dropped with weakening rising momentum but still at highs on Tuesday. The contract should drop technically in a short term and will range at RMB 15,500-15,700/mt on Wednesday.

In China’s domestic market, suppliers hold back sales for higher prices and downstream battery producers stand on the sidelines with firm SHFE 1611 lead and purchase based on orders. Spot lead should decline by RMB 25/mt to RMB 15,550-15,650/mt on Wednesday.