SHANGHAI, Jul. 20 (SMM) – LME lead prices increased after opening at USD 1,901/mt overnight. Although the US initial jobless claims released overnight were higher than expected and the US used home sales for June fell unexpectedly to an eight month low, the weak economic data instead of dampening market, raised market expectations on implementation of QE3. Besides, given the remark by Premier Wen Jiabao on job creation, market predicts China should introduce further easing policies in the near term. LME lead prices rallied to close at USD 1,926/mt as a result, up USD 26/mt, or 1.37%. Trading volumes were up 1,436 lots to 3,965 lots, while positions were down 1,722 lots to 123,304 lots. LME lead inventories fell 1,975 mt to 339,675 mt.
The US dollar index closed at 82.94, and COMEX silver for September delivery closed at USD 27.20/oz.
On Friday, SHFE lead prices should move between RMB 14,970-15,100/mt with spot lead prices expected at RMB 15,050-15,150/mt.