SHANGHAI, Jul. 6 (SMM) – LME lead prices overnight opened at USD 1,914/mt and rose to USD 1,919/mt due to China’s surprise rate cuts but soon surrendered the gains as investors believed the move reflected concerns over China’s further slowdown. Besides, ECB’s rate cut, although within market expectation, similarly added to investor worries on weakening demand in European industry, driving LME lead prices to fall. During US trading hours, US initial jobless claims and ADP employment were reported better than expectation, but the positive influence on market was limited as market was dominated by news of interest rate cuts. LME lead prices kept falling to close at USD 1,884/mt, down USD 20/mt. Trading volumes were up 1,586 lots to 4,309 lots, and positions were up 3,919 lots to around 135,000 lots. LME lead inventories were down 675 mt to 348,575 mt.
The US dollar index closed at 82.79, and COMEX silver for September delivery closed at USD 26.67/oz, down USD 0.433/oz, or down 1.53%.
On Friday, SHFE lead prices are expected to be RMB 14,800-15,100/mt, while spot lead prices should be between RMB 14,900-15,050/mt.