SHANGHAI, Oct. 17 (SMM) – LME lead prices stabilized overnight after falling for eight trading days as market was boosted by a series of positive news. Spain was reported planning to ask for bailout formally, and Moody’s maintained Spain’s credit rating unchanged, easing investors’ concerns over the debt issue in the country. The US September CPI remained flat, lowering expectations for a earlier end of QE3. Besides, NAHB housing market index in the US rose to a new high since June 2006, another proof of the country’s economic recovery. The US dollar index thus dropped 0.5, while LME lead prices opened at USD 2,120/mt and fluctuated between USD 2,120-2,130/mt before hitting USD 2,132/mt. At the tail of trading, LME lead fell to USD 2,109/mt due to selling pressures but rose to USD 2,120/mt to finally close at USD 2,122.5/mt, up USD 5.5/mt. Trading volumes were down 2,090 lots to 4,410 lots, and positions were down 3,956 lots to 138,349 lots. LME lead inventories fell 1,275 mt to 300,425 mt. Market should focus on the UK September unemployment data and the US housing starts in September.
The US dollar index closed at 79.14, and COMEX silver for December delivery ended at USD 33/oz, up 0.78%.
On October 17, SHFE 1212 lead contract prices are expected to move between RMB 15,650-15,850/mt, and spot lead prices should be RMB 15,400-15,550/mt.