SHANGHAI, Feb. 5 (SMM) -- On Thursday, LME lead prices tumbled to a five-month low of USD 1,950/mt, as market concerns towards economic recovery in Europe curbed demand for base metals as an alternative investment. However, some long positions entered the market as they believed existing low levels were right time for them to go long, with intense competition between short and long positions. Even if it is not positive technically, it is too early to say that LME lead prices will plunge to USD 1,800/mt.
In neighboring markets, the Dow Jones index briefly dropped below 10,000 mark on Thursday as stocks suffered the largest decline in more than nine months. The euro plunged following debt concerns in the Eurozone, helping the US dollar index hit 7-month high, above 80. Gold futures on the COMEX fell to a 3-month low following massive sell-offs from risk avoidance behavior. Gold futures for April delivery ended USD 49 lower to USD 1,063 per ounce, and silver futures for March delivery closed at USD 15.35 per ounce, down cents 96.7.
Domestic lead market is expected to report lackluster trading sentiment, with prices estimated in the RMB 15,300-15,400/mt range.
To contact the writer on this report: Sherryshi@smm.cn
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