SHANGHAI, Feb. 12 (SMM) -- On Thursday, LME lead prices opened at USD 2,090/mt and closed at USD 2,129/mt, with the highest level at USD 2,132/mt and the lowest level at USD 2,040/mt. Daily trading volumes were 2,050 lots and positions were 80,332 lots.
According to data released yesterday from National Bureau of Statistics, China's CPI in January 2010 were down at 1.5% compared with the level of 1.9% in December 2009, easing inflation pressure in the short term, but PPI jumped to 4.3%. In the medium or long run, Chinese Government may adopt measures to curb inflation after the traditional peak demand season which will occur in the first half of 2010. Overseas investors were inspired by positive economic data from China, and prices of base metals all climbed up. Base metal prices were heavily weighed by expectation of inflation previously, and current price gained new upward momentum due to eased concerns over inflation in the short term. According to data from US Department of Labor released on last Thursday (February 6th), number of jobless claim in the previous week declined to 440,000, lower than expectation of 465,000. In addition, details of aid program for debt crisis in Greece is not concrete and specific. In this context, US dollar strengthened further, and touched high pressure level of 80.5, but later declined, staggering around 80.1. It is expected that US dollar may have difficulty in standing above 80 despite of fluctuation around this level in the short term, and base metal prices which were heavily weighed by rising of US dollar index will gain more freedom gradually.
It is expected that LEM lead prices will have room to climb further, with prices moving in the USD 2,100-2,170/mt range.
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