SHANGHAI, Feb. 20 (SMM) – LME lead prices drifted down after opening at USD 2,400/mt overnight and hit a low of USD 2,370/mt influenced by the strong US dollar index. Later, the ZEW economic sentiment index for Germany and the euro zone were reported above forecasts and previous figures, experts’ expectations for the euro zone economy turned optimistic. In response, LME lead prices stopped falling and returned above the 30-day moving average to finally close at USD 2,383.3/mt. Trading volumes were up 1,218 lots to 5,021 lots, and positions fell 1,384 lots to around 129,000 lots. LME lead inventories were down 100 mt to 288,325 mt.
The US dollar index ended at 80.47 with strong support at the 5-day moving average, and COMEX silver for March delivery fell USD 0.438/oz or 1.47% to close at USD 29.42/oz.
On February 20, the SHFE 1304 lead contract price should move between RMB 15,230-15,350/mt, with spot lead prices in China expected to be RMB 14,750-14,900/mt.