SHANGHAI, Mar.17 (SMM) – On Wednesday, LME lead prices surged by USD 132.5/mt to close at USD 2,600/mt, due to higher metal demand from Japan’s reconstruction, and due to rekindled investors appetite, with LME lead prices far above daily moving averages. Although Japan huge earthquake is considered positive for metals demand for the long term, the nuclear crisis and Middle East unrest should negatively affected metals markets. In addition, current economic recovery meets a series of difficulties, including the US February home starts reported the largest declines in the past 27 years, and the Moody’s regulated Portage’s credit rate down. In this context, SMM expects LME lead prices to keep fluctuating in the short term, consolidating previous rises and waiting for further guide from macro economic direction. Close attention should be paid to Japan situation.
In neighboring markets, the US dollar fell back and hit 76.06 which was the lowest since November 2010, finally settling at 76.614. Gold futures for April delivery closed USD 3.30 higher at USD 1,396.10 per ounce; silver futures for May delivery closed 35.5 cents higher at USD 34.472 per ounce.
SMM expects transactions in domestic lead markets to be made between RMB 17,100-17,200/mt on Thursday.
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