SHANGHAI, July 2 (SMM) – LME lead market yesterday opened at USD 1,749.5/mt, and closed at USD 1,730/mt, with a daily session high and low level of USD 1,763/mt, and USD 1,697.5/mt, respectively.
On Thursday, China's official purchasing managers' index (PMI) fell to 52.1 in June from 53.9 in May, triggering market concerns over the pace and strength of the global economic recovery. Purchasing price index, one of major sub-indexes of PMI fell sharply for a second consecutive month, suggesting that China’s PPI will likely drop in June, which will reduce market expectations of inflation and higher interest rate. However, the drop in the PMI also reflected waning demand in overseas markets, as new export order index fell 2.1% in June from May levels. In addition, unfavorable external economic environment will also negatively affect China’s exports. In other news, data from the U.S. showed new jobless claims unexpectedly rose last week, raising market worries over the employment report to be released on Friday.
Sharp declines on LME lead market dented market sentiment, leaving prices below USD 1,750/mt. SMM believes LME lead prices will likely continue to drop amid market concerns.
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